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Full text of "North Carolina Register v.5 no. 24 (3/15/1991)"

/ ^1 i -/ / 



/NCZ5 



The 
NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 




CORRECTION 

Medical Examiners, Bd. of 

FINAL DECISION LETTER 

PROPOSED RULES 

Crime Control and Public Safety 

Human Resources 

Insurance 

Medical Examiners, Bd. of f , 

Opticians, Bd. of ^^CE"/V£n 

FINAL RULES UAR 

Revenue 

List of Rules Codified 



15 



mi 



'^^^ UBRARY 



ARRC OBJECTIONS 

RULES INVALIDATED BY JUDICIAL DECISION 

ISSUE DATE: MARCH 15, 1991 
Volume 5 • Issue 24 • Pages 1367-1400 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executi\e, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrati\e rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typicalh' comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North CaroUna 
Register is a\"ailable h\ yearly subscription at a cost of 
one hundred and fi\e dollars ($105.00) for 24 issues. 

Requests for subscriptions to the North Carohna 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 27447, Raleigh, N. 
C. 27611-7447, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carohna Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effecti\"e date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too length}-. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrati\e Hearings and at the office of the pro- 
mulgating agenc\'. 

Unless a specific statute pro\ides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North CaroUna Register heiore the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file an\' adopted or amended rule for appro\al by 
the Administrative Rules Re\iew Commission. Upon ap- 
pro\al of ARRC. the adopted or amended rule must be 
filed with the Office of Administrati\e Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted \ersion will again be published in the 
North CaroUna Register. 

A rule, or amended rule cannot become effecti\e 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules ma>' be withdrawn b\' the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary- rules. A temporar>' 
rule becomes effecti\e when adopted and remains in 



effect for the period specified in the rule or 180 day; 
whichever is less. An agency adopting a temporars' rul 
must begin normal rule-making procedures on the pe 
manent rule at the same time the temporary rule 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrati\e Code (NCAC) 
a compilation and index of the administrative rules 
25 state agencies and 38 occupational licensing board 
The NCAC comprises approximately 15,000 letter siz 
single spaced pages of material of which approximate 
Iv 35''o is changed annuallv. Compilation and publico 
tion of the NCAC is mandated by G.S. 150B-63(b) 

The Code is divided into Titles and Chapters. Eac 
state agency is assigned a separate title which is fui 
ther broken down by chapters. Title 21 is designate 
for occupational licensing boards. 

The NCAC is a\ailable in two formats. 

(1) Single pages may be obtained at a minimur 
cost of two dollars and 50 cents ($2.50) for 1 
pages or less, plus fifteen cents ($0.15) per eac 
additional page. 

(2) The full publication consists of 53 \olume 
totaling in excess of 15,000 pages. It is suj 
plemented monthly with replacement pages 
one vear subscription to the full publication ii 
eluding supplements can be purchased fc 
seven hundred and fifty dollars ($750.00). Ii 
di\idual \olumes may also be purchased wit 
supplement ser\ ice. Rene\^■al subscriptions fc 
supplements to the initial publication availabl 

Requests for pages of rules or \olumes of the NCA 
should be directed to the Office of Administrati\ 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pn 
cedures to be followed. For specific statutory language 
it is suggested that Articles 2 and 5 of Chapter 150B c 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carohtia Register is cited bv \olume, issui 
page number and date. 1:1 NCR 101-201, April 1, 198 

refers to Volume 1, Issue 1, pages 101 through 201 
the North CaroUna Register issued on April 1, 1986 



North Carolina Register. Published bi-monthh' by the 
Office of Administrati\e Hearings, P.O. Drawer 27447, 
Raleigh, North Carolina 27611-7447, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per yean 

North Carolina Administrative Code. Published in 
looseleaf notebooks with supplement ser\ice by the 
Office of Administrati\e Hearings, P.O. Drawer 27447, 
Raleigh, North Carolina 27611-7447, pursuant to 
Chapter 150B of the General Satutes. Subscriptions 
seven hundred and fifty dollars ($750.00). Individual 
\olumes a\ailable. 



I 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




OJfice of Administrative Hearings 

P. O. Drawer 27447 

Raleigh, \C 27611-7447 

(919) 733 - 2678 



I. CORRECTION 

Medical Examiners, Bd. of 1367 



II. FESAL DECISION LEITER 

Voting Rights Act 1370 



III. PROPOSED RULES 
Crime Control and 
Public Safety 

Victim and Justice 
Services 1374 

Human Resources 
Facility Services 1371 

Insurance 

Actuarial Services 1374 

Engineering and Building 
Codes 1371 

Licensing Boards 

Medical Examiners, Bd. of 1374 

Opticians, Bd. of 1375 



Julian Mann 111, 

Director 
James R. ScarceUa Sr., 

Deputy Director 
Molly Masich, 

Director APA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



l\\ EPSAL RULES 
Revenue 

CorpwDrate Income and 

Franchise Tax Division 1378 

Individual Income Tax 1384 

List of Rules Codified 1387 

V. ARRC OB,IECTIONS 1392 

VI. RULES PSTALIDATED BY 

JUDICIAL DECISION 1395 

VII. CUMULATIVE INDEX 1397 



NORTH CAROLINA REGISTER 

Publication Schedule 

(April 1991 - December 1992) 



Issue 


Last Day 


Last Day 


Earliest 


+ 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


*++*♦*++ 


++++++++ 


+♦♦+++*+ 


++++♦++♦ 


+*++++*+ 


04/01/91 


03/11/91 


03/18/91 


05/01/91 


08/01/91 


04 15; 91 


03/22 91 


04/01/91 


05/15/91 


08,01/91 


05 01/91 


04/10,91 


04/17/91 


05/31/91 


09/01 91 


05' 15 91 


04,24/91 


05/01/91 


06 14 91 


09/01/91 


06,03:91 


05/10/91 


05/17/91 


07,03/91 


10/01/91 


06/14/91 


05/23/91 


05/31/91 


07/14/9! 


10/01/91 


0701/91 


06/10/91 


06/17/91 


07/31/91 


11/01/91 


07/15/91 


06,21,91 


06/28/91 


08 '14/91 


11/01 91 


08 01 91 


07/11/91 


07/18/91 


08 31 9! 


12/01 91 


08/15/91 


07/25/91 


08/01/91 


09 14'91 


12/01 91 


09 03 91 


08/12/91 


08/19/91 


100391 


01/01/92 


09, 16'91 


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08/30/91 


10 16 91 


01/01 92 


10 01,91 


09 10/91 


09/17,91 


1031/91 


02/01 92 


10/15/91 


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111491 


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11,01/91 


10' 11 ''91 


10/18/91 


12,0r91 


03/01 92 


11/15,91 


10 24 91 


10/31/91 


12 15/91 


03/01,92 


12/02,91 


11 07 91 


11/14/91 


01,01/92 


04/01 92 


12/16 91 


11 21 91 


12 02/91 


01 15 92 


04/01 92 


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12 09 91 


12/16 91 


01/31 92 


05 01 92 


01,15 92 


12/20,91 


12/31/91 


02 14 92 


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02/03/92 


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06/01.92 


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01/31/92 


03/15/92 


06/01,92 


03 02,92 


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02/17/92 


04 01 92 


07/01/92 


03/16 92 


02 24/92 


03/0292 


04 15 92 


07/01 92 


04 0192 


03,11/92 


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05 01 92 


08/01 92 


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03 25 92 


04/01 '92 


05 15 92 


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05,01,92 


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05 31 92 


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06 14 92 


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06 01,92 


05/11/92 


05/18/92 


07 01 92 


10 0192 


06' 15, 92 


05 '25/ 92 


06/01,92 


07 15 92 


10 01 92 


07 01,92 


06 10 92 


06/17/92 


07 31/92 


11 01 92 


07/15/92 


06, 24 92 


07/01 '92 


08 14'92 


11 01 92 


08,03,92 


07/13/92 


07/20/92 


09 02 92 


12 01 92 


08,14/92 


07/24/92 


07/31/92 


09, 13 92 


12 01 92 


09/01/92 


08/11/92 


08/18/92 


10 01,92 


01 01/93 


09 15 92 


08 25 '92 


09/01/92 


10,15/92 


01 01 93 


10 01 92 


09/10,92 


09/17 92 


10/31 '92 


02 01 93 


10/1592 


09 '24/92 


10/01 92 


11 14 02 


02 01 93 


11/02,92 


10/12,92 


10/19-92 


12 02 92 


03/01 93 


11/16,92 


10/23/92 


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12 16 92 


0301,93 


12/01/92 


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12 31 92 


04/01 93 


12/15 92 


11/24 92 


12/01/92 


01/14/93 


04/01 93 



* The "Earliest Effecth-e Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



CORRECTION 



CHANGE OF HEARING LOCATION FOR THE NOTICE PUBLISHED IN THE NORTH 
CAROLINA REGISTER, VOLUME 5, ISSUE 20 ON PAGE 1222. 



TITLE 21 OCCUPATIONAL LICENSING 
BOARD 

lyotice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Board of Medical Examiners of 
the State of North Carolina intends to amend 
rule(s) cited as 21 NCAC 32L .0001, .0005, and 
.0009. 



1 he proposed effective date of this action is May 
I, 1991. 

1 he public hearing will be conducted at 6:30 
p.m. on March 13, 1991 at the Marrioll RTP, 
• 1700 Guarditm Drive, Montsvillc, N .G. Raleigh 
Marriott, 4500 Marriott Drive (across from 
Crab tree I' alley Mall), Raleigh. North Carolina. 



Co 



omment Procedures: Persons interested may 
present written or oral statements relevant to the 
actions proposed at a hearing to be held as indi- 
cated above. Written statements not presented at 
the hearing should be directed before March I , 
1991 , to the following address: Administrative 
Procedures, NC Board of Medical E.xaminers, 
1313 Navaho Drive, Raleigh, NC 27609. 

CHAPTER 32 - BOARD OF MFDICAL 
EXAMINERS 

SLBCHAPTER 32L - APPROVAL OF 
PHYSICIAN ASSISTANTS 

.0001 DEFINITIONS 

The following definitions apply to this Sub- 
chapter: 

(1) "Physician Assistant or PA" means an 
auxiliary', paramedical person who functions 
at the direction of or under the supervision 
of a physician hcensed by the Board and 
who performs tasks traditionally performed 
by the physician, such as history taking, 
physical examination, diagnosis, and treat- 
ment. 

(2) "Physician Assistant Applicant" means the 
individual upon whose behalf an application 
is submitted who may function before ap- 
proval by the Board in the same manner in 
which he functioned as a student under strict 
supervision as outlined in Rule .0002 of this 
Subchapter. 



(3) "Supervision" means the physician's func- 
tion of overseeing, managing, and directing 
the medical acts performed by the PA as 
outlined in Rule .0009 of this Subchapter. 

(4) "Primary Supervising Physician" means the 
physician who, by signing the application to 
the Board, accepts full medical administra- 
tive responsibility for the PA's medical ac- 
tivities and conduct at all times whether he 
personally is providing supervision or 
supervision is being provided by a Back-up 
Supervising Physician. The Primary Super- 
vising Physician shall assume total responsi- 
bility to assure the Board that the PA is 
sufficiently qualified by education and train- 
ing to perform all medical acts required of 
the PA and shall assume total responsibility 
for the PA's performance in the particular 
field or fields in which the PA is expected to 
perform medical acts. 

(5) "Back-up Supervising Physician" means the 
physician who, by signing the application to 
the Board, accepts the responsibility to be 
available to supervise the PA's activities in 
the absence of the Primary Supervising 
Physician only in the practice sites hsted in 
the application approved by the Board. The 
Back-up Supervising Physician is responsi- 
ble for the activities of the PA only when 
he is providing supervision. 

(6) "Formulary" means the document which 
lists generic categories of drugs to be pre- 
scribed, ordered, or dispensed by physician 
extenders under written standing orders from 
the supervising physician for patient care in 
approved practice sites. 

(7) "Approved practice sites" means only those 
practice sites specifically listed in the ap- 
proved apphcation on file in the Board's of- 
fice in which the PA ma\' legally perfonn 
medical acts. 

Statutory .Authority G.S. 90-18(13); 90-lS.I. 

.0005 PRESCRIBING PRI\ILE(;ES 

(a) The PA Apphcant and the supervising 
physicians shall acknowledge in the apphcation 
that they are familiar with laws and rules of the 
Board regarding prescnbing; and shall agree to 
comply with these laws and rules by incorporat- 
ing the laws and rules, including the Fonnulary, 
into their written standing orders. 



5:24 NORTH CAROLIN.A REGISTER March 15, 1991 



1367 



CORRECTION 



(b) The generic categories listed in the 
F-ormulaPy- are based on the jVmerican Hospital 
Formulary Service published by the .'Vmerican 
Society of I lospital Pharmacists. The Formulary 
is adopted by reference by the Board as a part of 
this Rule in accordance with provisions of G.S. 
150B- 14(c). 

(c) The prescribing stipulations contained in 
these rules and in the Formulary apply to writing 
prescriptions, ordering the administration of 
medications in out-patient and inpatient settings, 
and dispensing medications. Approval to dis- 
pense must be obtained from the Board of 
Pharmacy. 

(d) Prescribing stipulations are as follows: 

(1) Controlled Substances: 

(A) No controlled substances (Schedules 2, 
2N, 3, 3N, 4, 5) defined by the State and 
Federal Controlled Substances Acts may 
be prescribed, ordered, or dispensed. 

(B) Verbal orders given to the PA by the 
supervising physician for administration 
of a controlled substance to a specific pa- 
tient may be entered into the patient chart 
by the PA just as an RN may transcribe 
a physician's verbal order into a patient 
chart. 

(-if ParL'nturcil ML'dicationf i - Xe purcntoral 
prc'parutionr . may l»t» prt."jLrib e d. ordorod, 
di 'i pL'nr i L'd, Bf adminiL i torod unloor . under 
tfee ordor rf tl*t» i . up e r i ieing ph> j . iciiin a* 
set- forth h* Subparagraph (J)(B) t+f Ai* 
PvuIl': with A# follo' i ' i ing L ' .KCcptionf i : 

(rVf InouLin: 

(-B4 Immuni.;ationf , (DPT. MMR, Wfi^ 

(Gi T e tanuf . toxoid, ©4^ ef hyp^'rimmun e 
s e rum: 

f©i Fpin e phrin e : 

f&i B e nadryl. 

(2) Parenteral .Medications - No parenteral 
preparations mav be prescribed, ordered, 
dispensed, or administered unless under 
the order of the supen.'ising physician as 
set forth in Parag-aph (d)(3)(B) of this 
Rule with the exception of those 
medications hsted on the Formulary as 
allowed. 

(3) E.xcluded Drugs: 

(A) Any pure form or combination of the 
generic classes of drugs listed in the 
Formulary may be prescribed, ordered, or 
dispensed, unless the drug or class of drug 
is Usted as excluded from the Formulary. 

f6^ Diaigr . oxcludod h^ A# Formulars . ??<- 
CL'pt controlled ' . ' ubi . tanco ' .' i . may ^ f>»- 
•■ cnbed h^ t^ ]r-^ only upon f . pL ' cific 
i i i i ntton t*f v e rbal ordoro from rt» oupor 
^ l ivuig phvLUcian fof a- L . pLX'Lfic patient givon 



b e foro Ae pr e ocription e* ord e r i* ioouod 
by t4ie PAt Such a preocription ef order 
must be f i ignod by tfee PA with a notation 
tba* it is iosuod e» tfee Gpocific order »f the 
supon . ic i ing physician. Pef example: 
Man' Smith, ftAr »» ord e r »f John Do e . 

(B) The PA mav prescribe an excluded drug 
or class of drug only as foUows: 

(i) after the patient has been previously 
seen by the super\'ising physician for 
initial treatment of that iUness and a 
wntten order has been entered into the 
chart by the physician for future treat- 
ment by the P.\; or 

(ii) upon a specific written or \'erbal order 
obtained from the supervising ph\sician 
before the prescnption or order is issued 
by the PA. 

(C) Such a prescription or order written as 
described in Paragraph (d)(3)(B) of this 
Rule must be signed by the PA with a 
notation that it is issued on the specific 
order of the supervismg physician, [-"or 
example: .Mar\" Smith, PA, on order of 



(4) 



(5) 



(6) 



(7) 



(8j 



John Doe. M.D. 



Refills - A prescription may not indicate 
a refill with the exception of birth control 
medications which may be issued for a 
period not to exceed one year.- 

Dosage Units - /Vmount of drug pre- 
scribed, ordered, or dispensed can be no 
more than 100 dosage units or a one 
month supply with the exception of birth 
control medications which may be issued 
for a period not to exceed one year. 

Prescription Notations - Every pre- 
scription must be noted on the patient's 
chart. A second prescription for the same 
medication may be authorized by tele- 
phone by the PA and must be entered on 
the patient s chart and countersigned by 
the supervising physician within the spec- 
ified countersigning time approved by the 
Board. 

Prescribing Number - A prescribmg numi- 
ber is assigned by the Board to a PA upon 
approval by the Board. This number 
must appear on all prescriptions issued by 
the PA. The prescribing number is used 
as the PA's .Approval Number. 

Prescription Blank Format - .VU pre- 
scriptions issued by a PA should shall 
contain the name and telephone number 
of the supervising physician: the name, 
practice address, telephone number, and 
prescribing number of the PA, as weU as 
all information required by law. A sug- 



L^6S 



5:24 NORTH CAROLINA REGISTER i\ lurch 15, 1991 



CORRECTION 



gested prescription format is included in 
the application packet. 
(9) Pre-signed Prescription Blanks - The 
supervising physician shall not leave pre- 
signed prescription forms for use by the 
PA. 



Statutory Authority G.S. 
I SOB- 14(c). 



90-/S(/3j; 90-18.1; 



.0009 SL PERVISION OF A PA 

Supervision shall be provided by the responsible 
physician as foUovvs: 
(1) Availability: 

(a) The supervising physician shall be avail- 
able for direct communications by radio, 
telephone, or telecommunications. 

(b) The super\'ising physician shall be avail- 
able on a regularly scheduled basis for re- 
ferrals of patients from the PA. 

fe) A PA iihall refer a patient te another 
health provider other than an- approved 
supenJL i ing phy - jioian only »» tl+» order 
ef aft approved oupor . i ' ; . ing phv j iician. 
Written Standing Orders: 



(2) 
(a) 



The super\ising physician shall provide in 
each practice location, for use by the PA 
and for referral by other personnel, written 
standing orders and drug protocols to 
cover most commonly encountered prob- 
lems in the practice setting. 

I'he written standing orders shall include 
a predetermined plan for emergency ser- 
vices. 

The PA shall refer a patient to another 
physician other than an approved supcr- 
\ising physician only in accordance with 
wntten standing orders. 
Countersigmng: 

Ihe time internal between the PA's con- 
tact with the patient and chart review and 
countersigning by the supervising physi- 
cian shall be 72 hours. 
A longer countersigning time interval may 
be considered by the Board upon specific 



(b) 



(c) The PA 



(3) 
(a) 



(b) 



(c) 



(4) 
(a) 



request. The request should explain the 
practice circumstances which necessitate 
the longer countersigning interval. 
All entries by a PA into patient charts in 
all approved practice locations must be 
countersigned by the supervising physi- 
cian. Entries include but are not limited 
to: progress notes; treatment rendered; 
tests or procedures ordered; and notations 
of prescriptions or orders, and drugs dis- 
pensed or administered. 
Supervision /\rrangements: 
If the PA is to perform duties away from 
the supervising physician, the application 
must clearly specify the circumstances 
which would justify this action and the 
supervisory arrangements estabhshed to 
protect the patient. 

Details must be submitted describing dis- 
tance, time, topography, physical charac- 
teristics, and communication ability 
between the PA and the supervising phy- 
sician. 
Supervising Physicians: 
A physician in a graduate medical educa- 
tion program, whether fuUy licensed or 
holding only a resident's training license, 
cannot be named as a supervising physi- 
cian. 

A physician in a graduate medical educa- 
tion program who is also practicing in a 
non-training situation may supervise phy- 
sician assistants in the non-training situ- 
ation if fully licensed. 
All physicians who may supervise the PA 
in any manner must be approved by the 
Board before PA supervision occurs. 
The PA must be prepared to demonstrate 
upon request to a member of the Board, or 
its delegates, the ability to perform the 
medical acts assigned by the supervising 
physician. 



Statutoiy Authority G.S. 90-18(13). 



(b) 



(5) 
(a) 



(b) 



(c) 



(6) 



5:24 NORTH CAROLINA REGISTER March I >, 1991 



1369 



VOTING RIGHTS ACT FINAL DECISION LETTER 



[G.S. 120-30. 911, effective July 16, 1986. requires that all letters and other documents issued by the 
Attorney General of the Lniled Stales in which a final decision is made concerning a "change af- 
fecting voting" under Section 5 of the Voting Rights Act of J 965 be published in the Sorth Carolina 
Register. / 



U.S. Department of Justice 
Civil Rights Di\ision 

JRD:SSC:DDC:lri 

DJ 166-012-3 Votina Section 

91-0205 P.O. Box 66128 

Washington, D.C. 20035-6125 



Februan- 19, 1991 



Jesse L. Warren. Esq. 

City Attorney 

Drawer \^'-2 

Greensboro, North Carolina 27402 

Dear Mr. \\^arren: 



This refers to the annexation (Ordinance No. 91-4) to the City of Greensboro in Guilford County. 
North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights Act of 
1965, as amended, 42 U.S.C. 1973c. We received your submission on Januan.' 28, 1991. 

The .Attorney General does not interpose any objection to the specified change. However, we note 
that Section 5 expressly provides that the failure of the .-\tlomey General to object does not bar sub- 
sequent Utigation to enjoin the enforcement of the change. In addition, as authorized by Section 5. 
we reser\'e the right to reexamine this submission if additional information that would otherwise require 
an objection comes to our attention during the remainder of the sixty-day review period. See the 
Procedures for the Administration of Section 5 (28 C.F.R. 51.41 and 51.43). 

Sincerely, 

John R. Dunne 

Assistant Attorney General 

Ci\'il Rights Division 



By: 



J. Gerald Hebert 
Acting Chief. \'oting Section 



irO 5:24 NORTH CAROLINA REGISTER March I. \ 1991 



PROPOSED RULES 



TITLE 10 DEPARTMENT OF HUMAN 
RESOURCES 

I\ otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Certificate of Xeed Section, Div. 
of Facility Services, Dept. of Human Resources 
intends to adopt and amend rule(s) cited as 10 
NCAC3R .0320 and .2002. 

1 he proposed effective date of this action is July 
I, 1991. 



Statutory Authority 
I3IE-I8f I3IE-IS5. 



I3IE-I77(I); 



Th 



he public hearing will be conducted at 2:00 
p.m. on .April 16, 1991 at the Division of Facility 
Services, Room 201, Council Building, 701 
Barbour Drne. Raleigh, N. C. 27603. 



Co 



omment Procedures: Written comments con- 
cerning the titles should be submitted as soon as 
possible but no later than April 16. 1991 to Jackie 
Sheppard, 701 Barbour Drive. Raleigh. N. C. 
27603. Oral comments may be presented at the 
hearing. 

CHAPTER 3 - FACILITY SER\ ICES 

SLBCIIAPTER 3R - CERTIFICATE OF NEED 
REGULATIONS 

SECTION .0300 - APPLICATION AND REVIEW 
PROCESS 

.0320 HOME HEALTH AGENCIES 

(a) For those home health agencies for which 
no certificate of need was issued, the home health 
agency's geographic ser\'ice area shall be only 
those counties in which patients were served as 
shown on the existing home health agency's 
hcensure renewal form on tile with the Licensure 
Section of the Division of Facility Services as of 
January 1, 1991. 

(b) For those home health agencies for which 
a certificate of need was issued, the home health 
agency's geographic service area shaU be as fol- 
lows: 

(1) \\'Tiere the sen'ice area is identified on the 
certificate of need issued to the home 
health agency, the agency's geographic 
ser\'ice area shall be the service area iden- 
tified on the certificate of need. 

(2) Where the service area is not identified on 
the certificate of need issued to the home 
health agency, the agency's geographic 
service area shall be the proposed ge- 
ographic service area which was identified 
in the application for a certificate of need 
and approved by the Certificate of Need 
Section. 



SECTION .2000 - CRITERIA AND STANDARDS 
FOR HOME HEALTH SERVICES 

.2002 DEFINITIONS 

The following definitions in this Rule will apply 
to all rules in this Section: 

(1) "Home Health Agency" means » private 
organization ef publio agency, ' ■ ' ■ helhor 
o' i ' i ned ©f oporatod hf »»» ef more? por i T i ono 
ef legal e ntit ie;. , sshioh fumiohoo Bf off e rs te- 
furnish homt* health sop i iooo. an aaencv as 
defined in G.S. L^ IE- 176. 

(2) "Home Health Services" means items aft4 
s e P i ices furnished fr» aft individual by a 
home health agency, ef by others under en- 
rangements made by tl«* agency, »» a visit 
iftg basis, m a pluco ei t e mporar>' »f 
pennanent rer . idonce used as tfee individual's 
home, services as defined in G.S. 1.^ IF'- 176. 

(3) " Proposed Geographic Service .Area" 
means; a county ift vi i hich a proponent 
proposes te establish a home health agency 
©f contiguous counties whoso boundaries 
touch t+H» boundary &f tfee county » ' ■ vhich 
th«» office ef tfet* home health agency wtil be 
located aH4 ^hose grouping i* consi ' . . tent 
with er . tablished medical eafe utilii'.ation 
patterns a*- defined Wt th<* Stat e Medical i^ 
cilities Flan. 

(a) Where the proponent has proposed to es- 
tablish a home health agency to meet the 
need projected in the applicable State 
Medical Facilities Plan for a single county. 
the smglc county in which the home 
health agency will be established; or 

(b) Where the proponent has proposed to es- 
tablish a home health agency to meet the 
need projected m the applicable State 
Medical Facilities Plan for a grouping of 
contiguous counties, those contiguous 
counties defined in the State Medical Fa- 
cilities Plan m effect at the beginning of 
the review penod for the application and 
in which the proponent will pro\ide home 
health services. 



Statutory Authority G.S. I31E-177(1). 

TITLE 1 1 DEPARTMENT OF 
INSIRANCE 

I y otice is hereby given in accordance with G.S. 
I50B-12 that the N.C. Department of Insurance 



5:24 NORTH CAROLINA REGISTER Mmch 15, 1991 



1371 



PROPOSED RULES 



intends to amend nde(s) cited as 1 1 SCAC 8 
.080/ - .0802, .0805. .0815: and repeal nde(s) 
cited as II NCAC 8 .0803 - .0804. .0806 - .0814, 
.0816 - .0818. 



Th 



he proposed effective date of this action is July 
J. 199/. 

I he public hearing will be conducted at /O.OO 
a.m. on April 25. 199/ at the .V.C Department of 
Insurance, Qualifications Board, 4/0 \. Boylan 
.Avenue. Raleigh, N.C. 2761 1 . 



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ommcnt Procedures: Written comments may 
be sent to G rover Sa^vver c;o Qualifications 
Board, P.O. Box 2638^.' Raleigh, .X.C. 2''6//. 
Oral presentations may be made at the public 
hearing. .Anyone hcning questions should call 
Grover Scnn^er at (QIQ) 733-390/ or Ellen 
Sprenkel at (9/9) 733-4700. 

CHAPTER 8 - KNGINEERING AND BUILDING 
CODES DIMSION 

SECTION .0800 - DISCIPLINARY ACTIONS: 
OrilKR CONTESTED MATLERS 

.0801 DISCIPLINARY POWERS 

¥b* North Carolina Co do OtTicialr f Qualifica 
tk+ft Board h»^ (4*e pov i or to- 'l U '. pt ' nd. rt" . ola * . h* 
rotu '^ o i» grant (*m- certifKatt ' H+ i*w- pur^on v , \\o. 
{Vf ba* boon convictod ef » ll'lony agauist tfe» 

Stato 6vf North Carolina e>f At* I nitod 

Statfj. (# oonsictud »f » folony » another 

f . tat e Aa+ ' . i . ould eiko W tt ' lony tf i4- lw4 boon 

committ e d » «4«* stat e : 
f4+ h»* obtained coilification through fraud. 

docoit . t+f porjup » '; 
(4+ hr** kno>' i ingly aidod t*f abottod wty porr . on 

practicing contrary te A^ prosij i ion i r . ei GS. 

Chaptor 4-4^^ Articl e Uft^ w *4 *e -frt^^ 

building codo: 
f-!4 h*7 dolruudod A# public t+f attemptod k* 

(44 ha^ affix e d fe i . ignatur e ygf a report t4 ift- 

■ jpoction H* other uii . taiment t4 ' jop i ico tf tte- 

inL . poction ha* boon mad e \»r h+n* «+f und e r 

k» immediate »¥^ rouponL i ible direction: »f 

f^ ha* boon guilty t4" i i i i illful misconduct, groar . 

negligence, t-vf gro - ji . incompolonco. 
(a) As used in this Section "Board" means the 
North Carolina Code Officials Qualification 
Board: 'otficial" means a qualified Code- 
enforcement official as defined in G S. 
143-151.S(5|: and "Code" means the North 



(b) Any person who believes that an official is 
or has been in violation of GS. 143- 151.17(a) 
may file a complaint against that official. 

Copies "of U NCAC 8 .(J801 and G.S. 
143-151.17 shafl be mailed to any person re- 
questing complaint information from the Board. 

(c) 1' he complaint must specifically refer to one 
or more of the grounds in Cj.S. 143-151. 17(a). 
"1 he name of the otTicial. \\_ known, and the name 
of the local inspection department must be listed. 
If the otficial is unknow n. the complaint must 
refer to "the inspector who performed the build- 
ing (or elect ncal, mechanical, or plumbing) in- 
spection." 

(d) Supporting information must be included 
to justify the complaint. If the complaint in- 
\olves violations of the Code that the official did 
not disco\er, a list^ of those \iolations must be 
submitted with the complaint. Such inlormation 
may be provided bv the complainant, an archi- 
tect, professK)nal engineer, licensed contractor, 
certified inspector, or other person with know- 
ledge of the Code. Supporting information must 
refer to specific violations of the Code or of the 
Cjeneral Statutes. 

(e) The complaint must be in writing, signed 
bv the complainant, and dated. The complaint 
must include the complainant s mailing address 
and a daxtime phone number at which the 
complainant may be reached. 1 he street address 
of the structure must be included. 1 here must 
be a notan/ed verification at t_he end of the 
complaint - 

Staluioiy .Authority G.S. 
143-/5/'. /7. 



/43-/5/./2(/); 



Carohna State Building Code. 



.0802 PRELIMINARY IN\ ESTIGATION 

On receipt of a ' l oriJled complaint i» ' i vriting t+f 
afty- person alleging a siolation t4 a typo li i. ted i» 
R«l# .OSOl. tht^ Board confonning to U NC.AC 
8 .0801. the Board s statf shall dir e ct rt* ^*aft te 
make an investigation of the charges. If the staff 
reports that the charges appear to be frisolous 
aft4 te have no basis in fact, the Board shall so 
notify the person fding the complaint. If the 
person filing the complaint then requests a 
formal he;irmg of the charges, or it the staff re- 
ports that the charges may ha\e some basis in 
fact, the Board shall fix a time and place for a 
hearing and give notice to the parties. aft4 p«*- 
cood i» accordanc e V i ith tfer* provisions t» Rules 

Statutoiy Authority G.S. /43-I5 / ./7(b). 

.0803 NOTICE TO PARLIES (REPEALED) 
.0804 EMERGENCY SUSPENSION (REPEALED) 



13-2 



5:24 F^ORTH CAROLINA REGISTER March 15, 1991 



PROPOSED RULES 



Statutory Authority G.S. l50A-3(b); l50A-3(c); 
l50A-23(b), (c), (d). 



m 

m 



.0805 PRESIDING OFFICER 

(*) j^ chairman ef A# board f . hull dt ' oignato: 
(44 a m e mb e r ef the Board a» hoaring officijr: 
throo e* moro momboro ef A« Board a* a 
hoarinij committoo; e* 
y*e fott board te hoar Ae cq ' jo. 

/ >-. V I I »-i IJt^ r 1 1 « f-i ■ « « w-K i-t .-» j-\ I J T -^ 1 1 1-» Vt 1 - ■i r^-\ g-t 1 - f\ T ■-> 

y ^_' / TTTTTT 1 1 I^J I 111) I C ITT ZTCTTT^T lUIXI I L' T CT L'U.1 I T Cx CT 

timoly aft4 ' jufTioiont afiidavit »f pcTL . onal bias ©f 
disqualification by a hoarmg oflicLT, a member 
ef a hearing committee, »f a member ef Ae 
Board. Ae p e rson challengod may elect te with 
drav i ' aft4 se- notify Ae chairman. W t4»t- puroon 
refuoon t«- withdraw, tbe Board shall conr r ider tl*e 
matter aft4 mak e a determination as te wh e ther 
tfeat- person should be disquaJifiod. which dot or 
mination shall bocomo a part ef tl*e record » Ae 
ea^ aft4 shall be subj e ct t«- judicial re>iew at- the 
conclusion t4 A** proceeding. 

fe-^ When a hearing officer »f a member ^ a 
hearing committee withdraws ef is di '. qualifiod 
©f it- is impracticable fof hi«* te- continue Ae 
hearing, tfee chairman shaU designate another 
member te sep . o as hearing officer e* member ©f 
tfee hoiiring committee. 4ie new iieanng officer 
e* m e mber ©f t4w h e aring committee will con 
tinuo Vi4t4» Ae ea^ unless it- is shown ti«*t- st*b- 
stantial pr e judic e to- afty party w4y r e sult 
therefrom. i» vs - hioh esent a Hew hearing shall be 
held ©f the t?ase dismissed V i ithout projudic - o. 

The Chainnan of the Board shall serve as pre- 



siding officer. In the absence of the Chairman, 



the Vice-Chairmcin shaU serve as presidini; otTi- 
cer, or a presidmg officer shall be elected by the 
Board. 

Stalutoiy Authority G.S. 143-151.12(1). 

.0806 CONSOLII).\TION OF SEN ER.\L C,\SES 

(REPEALED) 
.0807 \ EM E OF HEARING (REPEALED) 
.0808 PO\\ERS OF HEARING OFFICER: 

HEARING COMMITTEE: CHAIRMAN 

(REPEALED) 
.0809 ACTIONS PRIOR TO HEARING 

(REPEALED) 
.0810 CONDLCT OF HEARING (REPEALED) 
.081 1 Rl I.ES OF EMDENCE (REPEALED) 
.0812 DISPOSITION OF CASE BY 

STIPLL.VIION: ETC: OF PARTIES 

(REPEALED) 
.0813 PROPOSAL FOR DECISION 

(REPEALED) 
.0814 OFFICIAL RECORD (REPEALED) 

StatutofT Authority G.S. l50A-23(e): I50A-24: 
150A-25; l50A-25{b); J50A-26: 1 50 A- 27: 



l50A-28(a); l50A-28(b); J50A-29; I50A-30; 
150A-3l(a); l50A-3l(b): I50A-33; I50A-34; 
150A-37; l50A-37(b). 

.0815 FINAL BOARD ORDER 

(a) '-Fbe fiftai board decision shall be mad e by 
tb« felt board. If the Board decides that an offi- 
cial's conduct does not justify the suspension or 
revocation of his certificate but that his conduct 
does fail to conform to the standards of good 
code enforcement practice, the Board ma\' issue 
a letter of reprimand or a letter of caution to the 
official in which the Board may summarize those 
deficiencies and make appropnate recommen- 
dations. 

/hi I nPi Tl rl'tl h/'\'>rri -^^ ■•>■"•' t~ » .^ t-i l- K --i I 1 K.a rr, '\ A 1^1 r^r\\\; 

\ ^ J I 1 IV 1 11 ITJI rTTTTTT^T LI V. V.' 1 ;i lU 1 1 D 1 1 LI 11 r*T? 1 1 iLlilt? LTlllT 

after a f+ttt re>iew ©f t+» official r e cord aftd after 
affording parties aft opportunity to- contest asy 
proposal f»f decision prepared by hoaring officer 
©f hearing committee, as specified m Rule .OS 13 
ef tbis Chapter. 

fe-^ 44*e final board decision shall be ifi- writing 
aft4 shall include findings ©f fa<?t- aft4 ccMiclusions 
©f law-T [ indings ©f fa*?t- shall be based o.xclu ' i' . elv 
©ft tbe evidence aft4 ©ft matters officially noticed. 
Findings ©f fatJt-r tf M*t- forth ift statutory liinguago, 
shall be accompanied by a concise aft4 explicit 
statement ©f tbi* underlying facts supposing 
them. A deci i ion ©f ord e r i . hall »©* be made 
except upon consideration ©f tbt» record as a 
' ■ vhole ©f such portion thereof as win^ be cit e d 
by afty party to tbe proceeding aft4 shall be swp- 
ported bv s . uhs . tantial osidonce admis .'i ible under 
fe^ 15( I ,A 20(a). LSQA JO. ©f 150A 31. 

(b) f4^ If tbe decision a final board order is to 
suspend, revoke, or refuse to issue a certificate, 
the d e cision order shall set forth the conditions, 
if any, which must be met in order to remove the 
suspension, to re-issue the certificate, or to issue 
the certificate. No action to remove a suspension 
or to issue or re-issue a certificate (other than as 
specified in the decision) order) shall be taken 
without notice to the original parties and an op- 
portunity for them to request a new hearing in 
accordance with the same procedures specified 
herein in Chapter l.^OB of the General Statutes 
and this Section for the original hearing. 

fe) A copy ©f Ae final d e cision shall be senod 
upon each parly per '' Onall>" ©f by regi '. tered mail 
aft4 a copy fumi -. hed to bts attorney ©f record. 



Statuto/y Authority 
143-151.17(0). 



G.S. 143-151.12(1); 



.0816 JUDICIAL REMEW (REPEALED) 
.0817 APPEALS FROM ADMINISTRATIX E 

DECISIONS (REPEALED) 
.0818 PROHIBITION AGAINST EX P.\RTE 

COMMLNICATIONS (REPEALED) 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



1373 



PROPOSED RULES 



Statutory Authority G.S. I50A, Article 3; I50A. 
Article 4; 150 A- 35. 



iS otice is hereby given in accordance with G.S. 
I50B-12 that the S.C. Department of Insurance 
intends to amend ndeis) cited as 1 1 SCAC 16 
.0102. 

1 he proposed effective date of this action is July 
1. 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on April 16, 1991 at the Dobbs Building. 430 
S. Salisburv Street, Third Floor Hearing Room, 
Raleigh, S'.C. 27611. 



Co 



■ ommeni Procedures: Written comments may 
be sent to Ed Jordan. P.O. Box 263S~. Raleigh. 
N.C. 2761 1. Oral presentations may be made at 
the public hearing. .Anyone haxing questions 
should call Ed Jordan at 1919) ^33-3284 or Ellen 
Sprenkel at (919) 733-4^00. 



CHAPTER 16 



- ACTUARIAL SERVICES 
DIMSION 



SECTION .0100 - FIRE AND CASUALTY 
STATISTICAL DATA 

.0102 LOSS RESER\ES 

.^ter a company is licensed, appro\'ed. or regis- 
tered to do business in North Carolina and it is 
deemed necessajA' for data collection purposes, 
the Actuarial Ser\"ices Division will mail to the 
company forms, instructions, and a diskette so- 
that the company can complete the twe re- 
quested items involving loss resene information 
from the list described in this Rule. The com- 
pany will have two months from the receipt of 
the request to comply. (Note: Companies that 
are part of a group poohng arrangement may 
submit consolidated Lnformation.) 

(1) The reproduction on diskette of the fol- 
lowing portions of Schedules O and P of the 
company's .Annual Statements for the years 
1981-1988 or for those \ears during that pe- 
riod when the company was in operation: 

fa) Schedule 0, Parts 3, 4, and 5; 
(b| Schedule P, Parts LA through IF. 

(2) The reproduction on diskette of Schedule 
J\ Parts LA through IQ of the company s 
■-Vnnual Statements for the years 1989 and 
subsequent or for those years during that 
period when the company was in operation. 



(3) f5| The completion of a series of 
interrogatories concerning the company's 
loss reser%'ing practices. 

Statutory Authority G.S. 58-2-40; 58-2-190. 

TITLE 14A - DEPARTMENT OF CRIME 
CONTROL AND PUBLIC SAFETY 

ly otice is hereby gi\-en in accordance with G.S. 
150B-12 that the Department of Crime Control 
and Public Safety, Division of Victim and Justice 
Services intends to repeal rule(s) cited as 14A 
\C AC 11. 0503. 

1 he proposed effective date of this action is July 
1, 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on April 15, 1991 at the Library, Second 
Floor. .Archdale Buildins., 512 S . Salisburv Street, 
Raleigh. SC 2^611. 



Co 



omment Procedures: Any interested person 
may present comments relevant to the action pro- 
posed at the public hearing either in writing or oral 
form. Written statements not presented at the 
public hearing may be directed prior to the hearing 
to Wanda D. Goodson. .Administrative Procedures 
Coordinator. First Floor. .Archdale Building, 512 
N. Salisbun- Street, P.O. Box 2768~. Raleigh. \C 
27611-^68'. 

CHAPTER 11 - DIMSION OF MCTIM .\ND 
JUSTICE SER\ ICES 

SECTION ,0500 - CRIME \ ICTIMS 
COMPENSATION COMMISSION 

.0503 DETERMINING COMPENS.VTION 
(REPEALED) 

Statutory .Authority G.S. 15B-4; I5B-6: l5B-~; 
15B-S; 15B-10; 15B-11: S.L. 1987, c. 819, s. 35; 
Chapter 322. 1989 S.L. 

TITLE 21 - OCCUPATIONAL LICENSING 
BOARDS 



fS otice is hereby gi\'en in accordance with G.S. 
150B-I2 that the Board of .Medical Examiners of 
the State of SC intends to amend rulei's) cited 
as 21 \CAC32B .0309. 



1 he proposed effective date 
September 1, 1991. 



of this action is 



Lr4 



5:24 NORTH CAR0LIN.4 REGISTER March L\ 1991 



PROPOSED RULES 



1 he public hearing will be conducted at 8:00 
a.m. on May 23, 1991 at the North Raleigh 
Hilton, 3415 Old Wake Forest Road, Raleigh, NC 
27609. 

y^ omment Procedures: Persons interested may 
present written or oral statements relevant to the 
actions proposed at a hearing to be held as indi- 
cated above. Written statements not presented at 
the hearing should be directed before May I, 
1991 , to the following address: Administrative 
Procedures, NC Board of Medical Examiners, PO 
Box 26808, Raleigh, NC 2761 1 -6808. 

CHAPTER 32 - BOARD OF MEDICAL 
EXAMINERS 

SUBCHAPTER 32B - LICENSE TO PRACTICE 
MEDICINE 

SECTION .0300 - LICENSE BY ENDORSEMENT 

.0309 PERSONAL INTERVIEW 

To be eligible for license by endorsement of 
credentials, applicants must appear before the 
Executive Secretary, a Board member, an agent 
of the Board, or the fuU Board for a personal 
interview upon completion of all credentials. 

Statutory Authority G.S. 90-13. 



lyotice is hereby given in accordance with G.S. 
150B-I2 that the State Board of Opticians intends 
to amend rules cited as 21 NCAC 40 .0202. .0205, 
.0206, .0307, .0314 and .0319. 

1 he proposed effective date of this action is July 
1, 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on April 15, 1991 at 412 North Wilmington 
Street. Raleigh, North Carolina 27601. 



Cc 



omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. A dditionally, the record will be open for 
receipt of written comments until the hearing. 
Such written comments must be delivered or 
mailed to Mr. Willard Barnes, Director, State 
Board of Opticians, 412 North Wilmington Street, 
Raleigh, North Carolina 27601-1061. 

CHAPTER 40 - BOARD OF OPTICIANS 

SECTION .0200 - CONDUCT OF REGISTRANTS 



.0202 REGISTRATION OF PLACE OF 
BUSINESS 

Every optical place of business, including each 
branch office, must be registered with the Board 
within ten days of the opening date and thereafter 
in the event of relocation, or change of ownership 
of the business or licensed optician in charge of 
the business. Upon registering within the ten day 
period, an optical place of business must register 
with the Board on an annual basis. The re- 
sponsibility for registration is placed upon the 
Ucensee as well as the business owner. Only one 
optical place of business may be operated under 
the registration of a single hcensed optician. Fees 
for registration shall be governed by Rule .0108. 
Should the ownership of an optical place of 
business change, the business must be registered 
with the Board under the name of the new owner 
and the registration fee must be paid. Likewise, 
if there is a change in the licensed optician in 
charge of the business, the business must register 
with the Board and the registration fee must be 
paid. Failure to secure registration of an optical 
place of business by the licensed optician under 
whose professional authority that place is oper- 
ated may subject that optician to suspension or 
revocation of license. An injunction closing the 
place of business may also be obtained. ^Aji op- 
tical place of business registered in accordance 
with this Rule is eligible for recognition as a 
training establishment when the requirements of 
Rules .0304, .0314, and .0321 of this Chapter are 
met. 

Statutory Authority G.S. 90-243: 90-249. 

.0205 BAITING OR DECEPTIVE 
ADNERTISING 

(b) If an item or service is advertised for sale 
but the offer is qualified the qualification must 
be conspicuously placed in the advertisement. 
For example, if spectacles or eyeglasses are of- 
fered for sale and a second pair is offered at a 
special or reduced price, the advertisement must 
state expressly whether the second pair is other 
than a duplicate of the first pair purchased. 
Likewise if a picture, illustration or description 
is included in the advertisement, it must accu- 
rately represent the item for sale. Bait ad\'ertising 
is an alluring but insincere offer to sell a product 
or service which the advertiser does not actually 
wish to sell at the price advertised. A seller may 
not in any way discourage the purchase of the 
advertised product. Specifically, he may not re- 
fuse to show or sell the advertised product or 
disparage the same in an attempt to sell another 
product. Furthermore, he may not demonstrate 



5:24 NORTH CAROLINA REGISTER March 15. 1 99 1 



1375 



PROPOSED RULES 



or show an unattractive or shopworn item or 
product in place of the advertised product. 
When a product is offered for sale at a discounted 
pnce. the discount must be truthful. In order to 
be truthlul. the discounted pnce must be based 
upon a bona fide original pnce. A bona fide or- 
iginal price is established bv selling the product 
at the onginal price for a maiontv of the time 
that the product is offered for sale. 

Statutory Authority G.S. 90-249. 

.0206 CONTIM IN(; EDUCATION 

(b) Each optician shall take a total of not less 
than eight hours of courses of study each calen- 
dar year as follows: 

( 1 ) four hours of study shall be essential to the 
practice of contact lens fitting, in lieu 
thereof three hours of study shaU be es- 
sential to contact lens fitting and one hour 
of study may be on business management 
and consumer protection; 

(2) throj four hours of study shall be essential 

to eyeglass fitting and dispensing. In lieu 
thereof three hours of a studv shall be 
essential to eveglass tltting and dispensing 
and one hour of stud\" may be on the 
North Carolina Opticianr\' I aws and 
Rules or ethics: 

(3) ©fte hour »f f ' tudy oh all h^ »«• tt** North 

Carolina Opticianry I aw^ »ffA Rulor . . if 
there has been an amendment to the I aws 
or Rules during the current vear. all North 
Carolma Licensed Opticians practicing 
opticianr\" in North Carolina will be re- 
quired to recei\'e one hour of continuing 
education on the Laws and Rules relating 
to such amendment or charge. 

Statutory Authority G.S. 90-249. 

SECTION .0300 - QL ALIFIC.\TIONS: 
APPLICATIONS: .\ND LICENSING 

.0307 TIME AND PLACE OF EXAMINATION 

Examinations wlU be held twice each year as 
announced. Applications must be duly made 
and filed with the Board 60 da)s prior to the date 
of the examination. The fee ef »ftt» hundrad 
dollars (S 100.00) to sit for licensure examination, 
as set forth in Rule .0108, must be made in cash, 
certified check, or monev order. 



Statutory Authority G.S. 90-240; 90-244. 

.0314 .APPRENTICESHIP REQUIREMENTS: 
REGISTRATION OF APPRENTICE 

(a) Each apprentice or intern entering the ap- 
prenticeship or internship shall register with the 



Board and be issued a certificate of registration. 
If the apprenticeship or internship is to be 
supen,'ised by an ophthalmologist or optometrist, 
the supervisor will pro\'ide a statement in which 
he agrees to abide by the same requirements as 
would an optician providing the same training. 

(b) Part-time work or work as an optical 
salesman or consultant shall not apply toward 
completion of apprenticeship or internship. 

(c) .An applicant, through apprenticeship, or 
internship shall have received his training by 
working fuU time, defmed as a minimum of 35 
hours per week, under the supenision of a h- 
censed optician, ophthalmologist, or optometrist 
following a curriculum approved by the Board. 

fd) No more than two apprentices or interns 
may be trained by a single optician, 
ophthalmologist, or optometrist at any time. 

(e) An apprentice or intern shaU be credited 
with training time onlv from the date of registra- 
tion with the Board as an apprentice or intern. 
Except as provided bv the Board for good cause 
shown, the apprenticeship or mtemshjp may not 
be interrupted for more than 12 months at the 
tune. 

(f) When registering to ser\e a six month 
internship, the applicant must have completed 
the three and one-halt \'ears of apprenticeship as 
required by G.S. 90-240(aif2) and (3) or have 
graduated from as appro\ed school of opticianrv, 
as defined in Rule .0312. with a degree of associ- 
ate in applied science through an opthalmic dis- 
pensing program. 

Statutory Authority G.S. 90-249. 

.0319 W.\I\ ER OF EXAMIN.\TION 

(a) .A.n out-of-state applicant seeking licensure 
in North Carolina under G.S. 90-24 l(aj shall 
tender an application prepared by him to the 
Board and in connection with same shall furnish 
affidavits from two persons with whom he 
worked as an optician for the previous four years. 
In addition, he shall furnish written statements 
from two qualified licensed refractionists, either 
ophthalmologists or optometrists, under oath 
that he has satisfactoril>" filled his prescriptions 
for both spectacle lenses and contact lenses and 
practiced the profession of opticianry for four 
years in that state immediately prior to the ap- 
plication. .Anv application filed bv an applicant 
seeking licensure pursuant to G.S. 9Q-41(a| must 
be tiled with the Board within 90 davs after es- 
tabli>hment of residence in North Carolina. 



lb) I "nl e; is A^ ^ . ' ■ ' I' Om I ' talemjuto t>f At» 
rt'tractioniotii L . tutt ' tbiri- tb# out of otat e applicant 
h«* r . atif . factonly filled thc^ir preocnptionf i fef both 
opjctaclo loncos aft4 contact l e no e s. t4*e applicant 



13^6 



5:24 NORTH CAROLINA REGISTER March 15, 1 99 1 



PROPOSED RULES 



shall h% roquirod te telte tbe liconso oxamination administered by the licensing authority in the 

adrriinisterod by the Board. An out-of-state ap- state in which he or she is licensed, or a national 

plicant shaU be required to take the contact lens contact lens examination approved by the Board, 
portion of the examination administered by the 

Board, unless such applicant documents that he o, , , a .1 ■, /^cnn-t:>jnn-,->cnn-^T^ 

r-' r 7 — : — ."i ■ — T — Statutory Authority G.S. 90-234; 90-235; 90-236; 

or she has passed a contact lens examination, „„ ..-.^ „„ -,.,,, ^^ ^^r «„ ,^„ ^„ ,-, 

iHbil^tmUy ^ iumrar -to-lhT^onl^t lens portion ^^-237; 90-24l(a); 90-245; 90-250; 90-2,2; 

of the examination administered by the Board, vO-JjJ. 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1377 



FINAL RULES 



1 he List of Rules Codified is a listing of rules that were filed to be effective in the month indicated. 

iKules filed for publication in the SCAC may not be identical to the proposed text published pre- 
viously in the Register. Rules filed with changes are noted with ** Amended, ** Adopted. Please 
contact this office if you have any questions. 

/l dopted rules filed by the Departments of Correction, Revenue and Transportation are published 
in this section. These departments are not subject to the provisions of G.S. I SOB. .-irticle 2 requiring 
publication in the S .C. Register of proposed rules. 

LJ pon request from the adopting agency, the text of rules will be published in this section. 

1 unctuation, typographical and technical changes to rules are incorporated into the List of Rules 
("odified and are noted as * Correction. These changes do not change the effective date of the rule. 



THLK 17 
DEPARTMKM OF REVENUE 



CHAPTER 5 - CORPORATE INCOME AND FR.ANCHISE TAX DIMSION 

SUBCHAPTER 5B FRANCHISE TAX 

SECTION .0100 - GENERAL INFORM.ATION 

.0107 EXTENSION OF FILING DATE 

(a) Prior to the regular due date, a corporation may apply for an extension of time for filing its return. 
An extension of time to file the franchise and income tax return may be granted for seven months 
providing the full amount of franchise tax and income tax anticipated to be due is paid with the timely 
filed extension application. 1 he extension will be granted automatically pro\idcd: 

( 1) the total tax is remitted with the application fonn; and 

(2) the corporation's records reflect no delinquent returns or outstanding tax Uability. 

(b) Form CD-419 is the application for extension form that must be fded before an extension of time 
to fde the return can be granted. The application should be completed in duplicate. Interest is charged 
on all extended tax payments at the rate established pursuant to G.S. 105-241. l(i). 

Histor\- Sote: Statutoiy Authoritv G.S. 105-120: 105-262: 
Eff February I, 1976; 
Amended Eff April I, 1991: January I. 1978. 

SECTION .1100 - CAPITAL STOCK: SURPLUS AND UNDIMDED PROEMS BASE 

.1 115 CASH BASIS CORPOR.\TIONS 

Corporations using the cash basis method of accounting for income tax purposes may not compute 
the capital stock, surplus and undisided profits base by this method. .Assets and liabilities must be 
accrued and reported for franchise tax purposes. 

Histoiy Sote: Statutorv Authoritv G.S. 105-122: I05-25S; 
Eff April I, 199 L' 

SUBCHAPTER 5C - CORPORATE INCOME TAX 



li78 5:24 NORTH CAROLL\A REGISTER Match 15, 1 991 



FINAL RULES 



SECTION .0300 - COMPUTATION OF NET INCOME 

.0304 ATTRIBLTION/EXPENSES/NONTAXABLE rSCOME//NONBLS INCOME/PRPTY 

(a) Direct Expenses - All expenses directly connected with the production of income which is not 
subject to tax in this State are required to be used to compute the net amount of such untaxed income. 

(b) Interest Expenses - When a corporation earns income which is not taxed by this State (see ex- 
amples), and/or holds property that does or will produce untaxed income, and incurs interest expense 
which is not specifically related to any particular income or property, it shall attribute a portion of the 
interest expense to such untaxed income and property in determining taxable income reported to this 
State. A formula used for computing the amount of interest expense to be attributed to untaxed in- 
come and property is as follows: 

(1) Value of assets: 

(A) Value of the tax return balance sheet of assets which produce or which would produce un- 
taxed income; * 

(B) Value of aU assets on the tax return balance sheet; ** 

(C) Determine the ratio of percent of Subparagraphs (b)(1)(A) to (B) of this Rule. 

(2) Income/ Profits: 

(A) Gross untaxed income; 

(B) Total gross profits; 

(C) Determine the ratio or percentage of Subparagraphs (b)(2)(A) to (B) of this Rule. 

(3) Total of the ratios or percentages determined in Subparagraphs (b)(1) and (2) of this Rule; 

(4) Divide the total of Subparagraph (b)(3) of this Rule by two; 

(5) Apply average percentage determined in Subparagraph (b)(4) of this Rule to the total interest 
expense on the return filed in this state. 

(c) Examples of Untaxed Income: 

(1) Dividend income classified as nonbusiness (G.S. 105-130.4); 

(2) Dividend income excludable by statute (G.S. 105-130.5); 

(3) Interest income classified as nonbusiness (G.S. 105-130.4); 

(4) Interest income earned on United States obligations and state of North Carolina obligations; 

(5) Other nonbusiness income and/or exempt income. 

(d) Expenses Connected with Interest Income from United States Obligations - Under G.S. 
105-130. 5(b)(1), interest income from obhgations of the United States or its possessions is excludable 
from North Carolina taxable income to the extent such income is excludable in federal taxable income. 
Since federal taxable income is in effect a net income, expenses incurred in producing the exempt in- 
come must be determined and subtracted from the gross amount earned during a taxable period before 
the deduction is made in computing the state taxable income. The basis for requiring this adjustment 
to exempt income is based on federal case law [Eirst National Bank of Atlanta v. Bartow County Board 
of Tax Assessors, 470 U.S., 84 I,. Ed. 2d 535 (I985)| and supported by an advisor)' opinion of the 
North Carolina Attorney General. In the computation of expenses related to income from Inited 
States obhgations, the formula described in Paragraph (b) of this Rule may be used with respect to 
interest expense. 

(e) Other Expenses Attributed to Nontaxable Income and to Nonbusiness Income and Property - 
In the determination of expenses other than interest expense attributed to untaxed income, the proce- 
dure set forth in the Eederal Code for determining expenses related to foreign source income generally 
referred to as stewardship and supportive expenses may be used to determine the expenses aUocatcd to 
untaxed income and property producing or which would produce untaxed income. Alternatively, an 
income formula as outlined in Paragraph (b)(2) of this Rule relating to interest expenses may be used 
to determine the amount of supportive function expenses attributable to untaxed income. In the de- 
termination of "supportive function expenses", direct expenses incurred exclusively in a specific iden- 
tifiable taxable or nontaxable activity should be determined and excluded before application of the 
attribution percentage to expenses. If direct expenses are determinable for a particular activity resulting 
in an accurate computation of the net income or loss from such activity, the \alues of this activity are 
to be removed as elements of the ratio when computing the attribution percentage. 

Note: + WTien the equity method of accounting is used, the increase or decrease in value 
as a result of such accounting method may be excluded from this value. 
Note: ** Equity included in this value may be excluded and the reserve for depreciation 
reflected on the balance sheet may be restored to the asset value. 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1379 



FINAL RULES 



History Note: Statutory Authority G.S. 105-130.4: 105-130.5; 105-262; 
Eff. April I. 1991. ' 

SECTION .0400 - IM EREST ESCO.ME ON GOVERNMENT OBLIGATIONS 

.0401 NORTH CAROLINA OBLIGATIONS 

Net interest income received by a corporation on obligations of the State of North Carolina and any 
of its cities, towns or counties is exempt from mcome taxes imposed by this state. 

History Note: Statutory' Authority G.S. 105-130.5; 105-262; 
Eff. February I, 1976; 
Amended Eff. April I, 1991. 

.0402 OBLIGATIONS OF OTHER ST.\TES 

Net interest income earned by a corporation on its investments in obligations issued by states and their 
political subdivisions other than the State of North Carolina, represents taxable income and is subject 
to this state's income tax. 

History Note: Statutory Authority G.S. I05-I30.5; 105-262; 
Eff. February 1, 1976; 
Amended Eff April 1. 1991. 

.0403 L.S. OBLIGATIONS 

(a) Net interest income earned on bonds, notes or other obligations of the Umted States or its pos- 
sessions is exempt from income taxation in this state so long as interest on obligations of the State of 
North Carolina and its political subdivisions is exempt from income ta.xes imposed. by the United 
States. 

(b) Net interest from obligations issued under the borrowing power of a federal land bank, a federal 
home loan bank, a federal intermediate credit bank. Government National .Mortgage Association, Farm 
Home Admrnistration, Fxport-Import Bank of the United States, Tennessee Valley Authority, banks 
for cooperatives. Student Loan Marketing Association, Federal Farm Credit Bank, Federal Financing 
Bank, Federal Savings and Loan Insurance Corporation and Commodity Credit Corporation is con- 
sidered to be interest from obligations of the United States and is tax exempt. 

Histor\- Note: Statutor,' Authoritv G.S. 105-130.5: 105-262; 
Eff Febman 1. 19^6: 
Amended Eff April I. 1991: October 23, 1977. 

SECTION .0700 - BL SINESS AND NONBUSFSESS EVCO.ME 

.0703 BUSINESS AND NONBUSINESS LSCO.ME 

The classification of income by the labels customarily given them, such as interest, rents, royalties, 
capital gains, is of no aid in determining whether that income is business or nonbusiness income. The 
gain or loss recognized on the sale of property, for example, may be business income or nonbusiness 
income depending upon the relation to the taxpayer's trade or business: 

(1) Rental income from real and tangible property constitutes business income when the rental of 
such property is a principal business activity of the taxpayer or the rental of the propert)' is related 
to or incidental to the taxpayer's principal business activity. 

(2) As a general rule, a gain or loss from the sale, exchange or other disposition of real or tangible 
or intangible personal property constitutes business income if the property while owned by the 
taxpayer was used to produce business income. However, the gam or loss will constitute non- 
business income providing: 

(a) such property was subsequently utilized pnncipally for the production of nonbusiness income 
for a period of at least three years prior to the disposition; and 

(b) such property- was reflected as nonbusiness on the corporate income tax returns filed for those 
years. 

(3) Interest income is business income il'the intangible with respect to which the interest was recei\ed 
arises out of or was created by a business activity of the taxpayer and in those situations where the 
purpose for acquiring the intangible is directly related to the business activity of the taxpayer. 



BSO 5:24 NORTH CAROLINA REGISTER March 15, 1991 



FINAL RULES 



(4) Dividend income is business income when dealing in securities is a principal business activity of 
the taxpayer. Most other dividends are nonbusiness income. 

(5) Patent and copyright royalties are business income if the patent or copyright was created or used 
as an integral part of a principal business activity of the taxpayer. 

History Note: Statutory Authority G.S. 105-130.4; 105-262; 
Eff. February I. 1976; 
Amended Eff. April I, 1991; October 31. 1981. 

SFXTION .1800 - COMPUTING TAXABLE PERCENTAGES ON DIMDENDS 

.1801 GENERAL RULE 

(a) Dividends received from a corporation and stock owned in such corporation by a corporate 
shareholder taxable in this state shall be taxable to the extent herein provided. 

(b) After September 30 of each year, the Secretary of Revenue shall determine from the corporate 
income tax return filed during the year ending September 30 by each corporation required to file a re- 
turn during that period, the proportion or percentage of the entire net income or net loss of the cor- 
poration allocable to North Carolina under G.S. 105-130.4. In case a corporation has net income 
allocable to North Carolina and a net loss from all sources everywhere, or a net loss allocable to North 
Carolina and net income from all sources everywhere, such proportion or percentage shall be the same 
as the apportionment fraction or percentage required by G.S. 105-130.4. 

(c) For income tax purposes, a corporate shareholder in any corporation shall be allowed to deduct 
the same proportion or percentage of the dividends received by it from such corporation during its in- 
come year ending on or after September 30. Corporate shareholders shall be allowed to use the same 
percentage in determining the deductible portion of the fair market value of stock owned in such cor- 
poration for intangibles tax purposes. The reciprocal of this deductible percentage shaU be called 
"taxable percentage." 

(d) Dividends recei\ed from a corporation and stock owned in the corporation by a corporate 
shareholder taxable in this state shall be 100 percent taxable for income tax and intangibles tax purposes 
where the corporation does not allocate any of its income to North Carolina or is not taxable here, even 
though the corporation may own or control another corporation that allocates all or a part of its in- 
come to North Carolina. 

(e) For purposes of this Regulation, a return shall not be considered due from the filing corporation 
until the fifteenth day of the third month following the close of the fding corporation's income year. 
For example, the due date of the return of a corporation whose income year ends November 30 shall 
be February 15. An income year ending on any day other than the last day of the month shall be 
deemed to end on the last day of the calendar month ending nearest to the last day of the corporation's 
income year. 

History Note: Statutory Authority G.S. 105-130.7; 105-262; 
Eff. Februan' I, 1976; 
Amended Eff April I. 1991. 

.1802 NO RETURN FILED IN YEAR ENDED SEPTEMBER 30 

(a) As a general rule and except as described below, no deduction shall be allowed during the year 
for any part of any dividend received by a corporate taxpayer from a corporation which filed no income 
tax retum with the Secretary of Revenue during such year. 

(b) When a newly incorporated domestic corporation does not file a retum during the first year of its 
operations because one is not due, the secretary shall declare that the taxable percentage of the corpo- 
ration for that year shall tentatively be zero. After the corporation files its first retum, a correct taxable 
percentage shall be determined from the retum and if it is materially different from the tentative taxable 
percentage previously determined, the secretary may use that percentage for the first year in redeter- 
mining the income tax and intangibles tax liabilities of the corporation's shareholders. The secretary 
shall notify the corporation, the intangibles tax division, the individual income tax division and the 
corporate income tax division of this change in taxable percentage so that necessary adjustments may 
be made in the income tax and intangibles tax retums of the corporation's shareholders. 

(c) When a newly domesticated foreign corporation does not file a retum during the first year of its 
operations because one is not due, the secretary shall declare that the taxable percentage of such cor- 
poration for that year shall tentatively be 100 percent. After the corporation files its first retum, a 



5:24 NORTH CAROLINA REGISTER March 15, 1991 13S1 



FINAL RULES 



correct taxable percentage shall be determined from that return and if it is materiaUy different from the 
tentative taxable percentage previously determined, the secretary- may use such percentage for the first 
year in redetermining the income tax and intangibles tax liabilities of the corporation's shareholders. 
The secretary shall notify the corporation, the intangibles tax division, the individual income tax divi- 
sion and the corporate income tax division of this change in taxable percentage so that necessar>' ad- 
justments may be made in the income tax and intangibles tax returns of the corporation's shareholders, 
(d) In case a corporation does not file a return during the current year because of an extension of its 
fding date, the secretary may tentatively use for the current year the taxable percentage of the corpo- 
ration as determined for the immediately preceding year. /Vftcr the corporation fdes the extended re- 
turn, a correct taxable percentage shall be determined from such return and if it is matenally ditferent 
from the tentative ta.xable percentage previously determined, the sccretars' may use that percentage in 
redetermining the income tax and intangibles tax liabilities of the corporation's shareholders. The 
sccretars' shall notify the corporation, the intangibles tax di\ision, the individual income tax di\ision 
and the corporate income tax division of this change in taxable percentage so that necessary adjust- 
ments may be made m the income tax and intangibles tax returns of the corporation's shareholders. 

Histon' ^ote: Slatulory Authority G.S. 105-130.7; 105-262; 
Eff. Febnmry 1, 1976; 
Amended Eff. April 1. 1991. 

.1803 lAVO RETURNS FILKD BY X CORPOR.VnON Dl RING n\TL\ E .MONTH PERIOD 

If a corporation files two income tax returns that are due during a year because of a change in its in- 
come year, the two returns shall be treated as one return in determining the proportion or percentage 
of such corporation's net income or net loss allocable to North Carolina under G.S. 105-13U.4. 

History Xole: Statutory- Authoritv G.S. 105-130.7; 105-262; 
Eff Februarv 1, 1976: 
.Amended Eff April 1, 1991. 

.1804 CHANCE FN NAME OR IN STATE OF INCORPORATION 

If there is a change only in the name of a corporation or in its state of incorporation, and the sur\i\ing 
corporation is the same operating entity that existed pnor to this change, the proportion or percentage 
of the corporation's net income or net loss allocable to North Carolina under G.S. 105-130.4 shall be 
determined from the return filed and due to be fded by the corporation during the year. 

History Note: Statutory .Authority G.S. 105-130.7; 105-262; 
Eff February 1, 19'7'6; 
Amended Eff. April 1. 1991. 

SECTION .2000 - EXTENSION OF IIMF FOR FILINC. RETl RN 

.2001 AUTOMATIC EXTENSION 

.2002 APPLIC.AI ION FOR AN ADDITIONAL EXTENSION 

History Sote: Statutory Authority G.S. 105-262: 105-263; 
Eff Februarv /. 1976: 

Amended Eff \ovembcr 1. 1987; October 23, 1977; 
Repealed Eff. April 1. 1991. 

.2004 APPLICATION FOR EXIENSION 

(a) .\n e.xtension of time to fde the franchise and income tax return may be granted for se\'en months 
providmg the full amount of franchise tax and income tax anticipated to be due is paid with the timely 
fded extension application. Ihe extension wdl be granted automatically pro\ided: 

( 1) the total tax is remitted with the application form; and 

(2) the corporation's records retlect no delinquent returns or outstanding tax habdity. 

(b) Form CD-419 is the application for extension form that must be fded before an extension of time 
to fde the return can be granted. The application should be completed in duphcate. I'he original 
should be fded with the corporate income and franchise tax di\ision on or before the 15th da\- of the 
third month following the close of the income year and the duplicate copy attached to the return w hen 



1582 5:24 NORTH CAROLINA REGISTER March 15, 1991 



FINAL RULES 



filed. An approved copy of the application will not be returned to the taxpayer. Payment of tax is 
required as follows: 

Franchise Tax - One hundred percent of the amount of franchise tax e.xpected 
to be due for the taxable year must be paid with the extension application filed. 
Income Tax - One hundred percent of the amount of income tax expected to 
be due after deducting estimated income tax payments made during the corpo- 
ration's taxable year must be paid with the extension application filed. 

History Note: Statutory Authority G.S. 105-262; 105-263; 
Eff. April I, 1991. 

SECTION .2100 - DISSOLUTIONS AND WITHDRAWALS 

.2101 DISSOLUTIONS 

(a) The "Business Corporation Act" provides for the dissolution of corporations immediately upon 
the effective date of filing the articles of dissolution with the Secretary of State. Although a tax clear- 
ance is no longer a part of the Secretary' of State's dissolution process, this in no way relieves the cor- 
poration of its liability to file all tax reports and returns due and pay all taxes due the Department of 
Revenue. The Department will continue to notify a corporation of any unfdled tax requirements. 

(b) After the end of the year in which dissolution occurs, a dissolved corporation is not subject to the 
annual franchise tax unless the corporation engages in business activities not appropriate to winding 
up and liquidating its business and affairs. 

(c) A corporation which has been suspended pursuant to G.S. 105-230 for failure to meet tax re- 
quirements and which has not been reinstated will be dissolved automatically at the end of five years 
from the date of suspension pursuant to G.S. 55-114(4). Corporations that intend to dissolve in this 
manner (i.e., by nonpayment of franchise tax) should notify the Revenue Department in writing to the 
following effect: that they are out of business; that they have disposed of all of their assets; and that 
they desire to be dissoKed by suspension for nonpayment of franchise tax. It should be pointed out, 
however, that suspension or dissolution under G.S. 55-114(4) in no way relieves a corporation of 
franchise tax liability when any property remains or where any corporate rights whatsoever are exer- 
cised. 

History Note: Statutory Authority G.S. 55-131; 55-144; 105-230; 105-262; 
Eff. February I, 1976: 
Amended Eff. April I, 1991. 

.2102 WITHDR.AWALS 

(a) Before a foreign corporation is permitted to withdraw its certificate of authority to do business in 
North Carolina, it must file all tax reports and returns due and pay all taxes due. The Revenue De- 
partment is required to make a certification of such fact to the Secretary' of State before withdrawal is 
permitted. The same general procedure followed with respect to dissolution, of notifying a corporation 
of any unfilled tax requirements, will also be followed for corporations withdrawing from North 
Carolina. 

(b) A corporation which is dissohing or withdrawing is required to file an income tax return for the 
then current year within 75 days after the close of business in this state. In this final return, the cor- 
poration must include in income any unrealized, deferred or unreported profit from installment sales 
and pay the tax due with such return before its dissolution or withdrawal is approved. 

History Note: Statutory Authority G.S. 55-131; 55-144; 105-230; 105-262; 
Eff. February I, 1976; 
Amended Eff April I, 1991. 

SECTION .2400 - DOMESTIC INTERN.ATIONAL SALES CORPORATION 

.2405 EARNrSGS OE DISC NOT PREMOUSLY TAXED 

History Note: Statutory Authority G.S. 105-130.1; 105-130.6; 105-130.15: 105-130.16; 105-262; 
Eff. November 1, 1984; 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1383 



FINAL RULES 



Repealed Eff. April I. 1991. 

CHAPTER 6 INDIMDL AL INCOME TAX DIMSION 

SLBCHAP lER 6B - INDIVIDUAL INCOME TAX 

SECTION .0100 - FILESG INDIMDLAL INCOME TAX RETURNS 

.0116 DEDUCTIONS FROM FEDERAL TAXABLE EVCOME 

Federal taxable income must be decreased by the following deductions to the extent the amounts are 
included in Federal gross income: 
(Ij Interest upon obligations of the United States or its possessions; 

Interest earned on obligations that are merely backed or guaranteed by the United States Gov- 
ernment will not qualify for deduction from an individual's income. The deduction from income 
wLU not apply to distributions which represent gain from the sale or other disposition of the secu- 
rities, nor to interest paid in connection with repurchase agreements issued by banks and savings 
and loan associations. 

(2) Interest on bonds, notes, and other obUgations of the State of North Carohna or any of its poh- 
tical subdi%isions; 

(3) Interest on obhgations and gain from the sale or disposition of obligations if North Carolina law 
under which the obUgations were issued specifically exempts the interest or gain; 

(4) Social Security benefits received under Title II of the Social Security Act and Railroad Retirement 
benefits received under the Railroad Retirement .Act of 1937; 

(5) Refunds of State, local, and foreign income taxes; 

(6) Up to four thousand dollars ($4,000) in retirement benefits from one or more Federal, state, or 
local government retirement plans; 

(7) Up to two thousand dollars ($2,000) in retirement benefits from one or more private retirement 
plans; 

(aj If an mdividual receives Federal, state, or local government retirement benefits and also receives 
other qualified retirement benefits, the total deduction is limited to four thousand dollars 
($4,000). For married couples filing a joint return, the ma.ximum dollar amount of retirement 
benefits that may be deducted from Federal taxable income appUes separately to the benefits 
received bv each spouse, so that the maximum deduction on a joint return is eiaht thousand 
doUars ($8,000). 

(b) If an individual received retirement benefits during the year from one or more private retirement 
plans other than state, local, or Federal go\emment retirement plans, he may deduct the amount 
received or two thousand dollars ($2,000), whichever is less. Married individuals filing a joint 
return where both received such retirement benefits may each deduct up to two thousand dollars 
($2,000) for a potential total deduction of four thous:md dollars ($4,000). 

(c) ■■RctLrcnient benefits" are amounts paid to a former employee or to a benefiaan,' of a former 
employee under a written retirement plan established by the employer to provide payments to 
an employee or beneficiar\' after the end of the employee's employment with the employer where 
the right to receive the pas ment is based upon the employment relationship. For self-employed 
Lndi\'iduals, retirement benefits are amounts paid to an indi\idual, or beneficiary under a written 
retirement plan established by the indi\idual to pro\ide payments after the end of self- 
employment. Retirement benefits also include amounts received from an indi\idual retirement 
account or from an individual retirement annuity (IRA), both of which are described in Section 
408 of the Internal Revenue Code. An individual is not required to have ceased employment 
to qualify for the two thousand dollar ($2,000) deduction for distributions from an individual 
retirement account or an individual retirement annuity. 

(dj The deduction for retirement benefits is allowed only to the extent the benefits are included in 
federal gross income. If an mdividual elects to roll-over the distribution from his employer's 
plan or from his individual retirement account, no deduction is allowed since the amount rolled 
over is not included in gross income. 

(e) A change in the structure of a corporate employer which causes a distribution to be paid to the 
employee from the emploNcr's retirement plan does not entitle the employee to claim the de- 
duction for retirement benefits from such distnbution. For example, Company A is merged 
with Company B. An employee of A continues to work for the merged company. During 1989, 
the employee received a distribution of five thousand dollars ($5,000) representing his total credit 



US4 5:24 NORTH CAROLINA REGISTER March 15, 1991 



FINAL RULES 



in the non-contributory retirement plan of Company A. The employee would not be entitled 
to the two thousand dollar ($2,000) deduction since he had not ceased employment. 

(f) Since short-term disability benefits from the Disability Income Plan of North Carolina adminis- 
tered for the benefit of North Carolina teachers and State employees are not paid to a former 
employee under a retirement plan after the end of the employee's employment, the benefits are 
not subject to the four thousand dollar ($4,000) deduction from Federal taxable income. 
Long-term disability benefits are payable after the conclusion of the short-term disability period 
or after salary continuation payments cease, whichever is later. Recipients of long-term disa- 
bility benefits under the Disability Income Plan of North Carolina are former employees and 
they are entitled to the four thousand doUar ($4,000) deduction from Federal taxable income. 

(g) Benefits paid to Federal civil service employees who become disabled prior to becoming age 60 
upon separation from service are paid to a former employee under a retirement plan after the 
end of the employee's employment and are subject to the four thousand doUar ($4,000) de- 
duction from Federal taxable income. 

(h) Sur\ivors of a member of the armed forces who receive benefits from the Retired Serviceman's 
Family Protection Plan or the Survivor's Benefits Plan as the result of taking a reduction in re- 
tirement pay are subject to the deduction of up to four thousand doUars ($4,000) from Federal 
taxable income; 

(8) The amount of North Carolma inheritance tax paid that is attributable to an item of income in 
respect of a decedent. 

The deduction from Federal taxable income is determined by multiplying the amount of North 
Carolina inheritance tax paid on all property transferred to the particular beneficiary, less the North 
Carolina inheritance tax paid if the item of income in respect of a decedent had not been included, 
by a fraction, the numerator of which is the income in respect of a decedent the beneficiary in- 
cluded in Federal gross income, as adjusted, and the denominator of which is the total income in 
respect of a decedent transferred to the beneficiary'; 

(9) Income earned by an enrolled member of the Eastern Band of Cherokee Indians or other federally 
recognized tribes if such income is derived from acti\ities on the Cherokee reservation while the 
member resided on the reservation. 

Histoiy Note: Statutory Aiithoritv G.S. /05- /34.6(b): 105-262; 
Eff. June I. 1990: 
Amended Eff. April I. 1991. 

SECTION .3500 - PARTNERSHIPS 

.3513 NONRESIDENT PAR1N.ERS 

(a) When an established business in North Carolina is owned by a partnership having one or more 
nonresident members, the managing partner is responsible for reporting the distributive share of the 
income of each nonresident partner and is required to compute and pay the tax due for each nonresi- 
dent partner. The tax rate is six percent of the nonresident partner's share of income up to twelve 
thousand seven hundred fifty dollars ($12,750), plus seven percent of the income over twelve thousand 
seven hundred fifty dollars ($12,750). The manager is authorizxd by statute to withhold the tax due 
from each nonresident partner's share of the partnership net income. Payment of the tax on behalf of 
nonresident corporate partners does not relieve the corporation from filing corporate income tax and 
franchise tax returns; however, credit for the tax paid by the managing partner may be claimed on the 
corporate returns. Although a partnership may treat guaranteed payments to a partner for services or 
for use of capital as if they were paid to a person who is not a partner, such treatment is only for pur- 
poses of determining its gross income and deductible business expenses. For other tax purposes, such 
guaranteed payments are treated as a partner's distributive share of ordinar\' income. In determining 
the allowable North Carolina deductions from Federal taxable income, do not include a partner's sal- 
ary, interest on a partner's capital account, partner relocation and mortgage interest differential pay- 
ments, or payments to a retired partner regardless of whether they were determined without regard to 
current profits. These types of payments are treated as part of the partner's share of the partnership 
income. A nonresident partner is not required to file a North Carolina individual income tax return 
when the only income from North Carolina sources is the nonresident's share of income from a part- 
nership doing business in North Carolina and the manager of the partnership has reported the income 
of the nonresident partners and paid the tax due. A nonresident partner may file an individual income 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1385 



FINAL RULES 



tax return and claim credit for the tax paid by the manager of the partnership if the payment is projjerly 
identified on the individual income tax return. 

(b) If a partnership has one or more nonresident partners and is operating in one or more states other 
than North Carolina, the partnership's net income attributable to North Carolina for the purpose of 
dctcnnining the North Carolina income tax liability of a nonresident partner must be determined by 
multiplying the total net income of the partnership by the apportionment percentage computed in 
Schedule B of Form D-403. This means that in the allocation of net income of a nonresident partner 
to North Carolina the applicable allocation formula prescribed for corporations is used. This allocation 
of income does not affect the reporting of partnership income by the resident partner because he is 
taxable on his share of the net income of the partnership whether or not any portion of it is attributable 
to another state or country'. 

Iliston Note: Statutory Authoritv G.S. I05-I34.5(d): 105-154; 105-262; 
Eff. February I. 1976; 
Amended Eff. April I, 1991; Febnmry I. 1991; December I. 1990; June I, 1990. 



F^S6 5:24 i\ORTH C.AROLIN.A REGISTER March 15, 1991 



FINAL RULES 



NORTH CAROLINA ADMINISTRATrVT CODE 

LIST OF RULES CODIFIED 

MARCH 1991 



AGENCY 
DEPARTMENT OF ADMINISTRATION 



1 



NCAC 



4G .0217 
6B .0212 



ACTION TAKEN 



Amended 
Adopted 



DEPARTMENT OF ECONOMIC AND COMMLNITY DE\ELOPMENT 



NCAC 



IJ .0102 

.0201 

.0501 

18 .0304 

.0306 



DEPARTMENT OF CORRECTION 



Amended 

Amended 

Adopted 

Amended 

Amended 



NCAC 



2F .0604 



DEP.\RTMENT OF HUMAN RESOl RCES 



10 



NCAC 



3C 



3Ii 



3R 



.1901 

.1902 - 

.1904 - 

.1910 

.1912 

.1913 - 

.1915 

.1916 

.1918 

.1922 

.1926 

.0107 

.0108 

.0315 

.0505 

.0507 

.0508 - 

.0510 

.0511 

.0709 

.0711 

.1108- 

.1501 

.1612 

.0317 

.1113 

.1115- 

.1117 

.1118 

.1119 

.1120 



1903 
1905 



1914 



0509 



1109 



:i6 



Amended 



Amended 
** Amended 
Amended 
** /Vmended 
** Amended 
Repealed 
** Amended 
Amended 
** Amended 
Amended 
Amended 
Repealed 
** /Vmended 
Amended 
** Amended 
** Amended 
Repealed 
Amended 
** Amended 
Amended 
** Adopted 
** Adopted 
^'Vmended 
Amended 
Amended 
** Amended 
** Amended 
Amended 
** Amended 
Amended 
** Amended 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



1387 



FINAL RULES 





.1124 


14C 


.1147 


14M 


.0601 




.0701 


42B 


.0902 - 




.1302 


45 




47B 


.0404 • 


50B 


.0407 


(IF I\Sl RANGE 



** Adopted 

* Correction 

* Correction 

* Correction 
.0903 Repealed 

Amended 

* Correction 
.0405 /Vmended 

Amended 



11 NCAC 12 .0904 +* Adopted 

AND N ATI RAL RESOURCES 

** Amended 

** Amended 

Amended 

** /Vmended 

/Vmended 

** Amended 

Amended 

/Vmended 

Amended 

** Amended 

/Vmended 

/Vmended 

Amended 

Amended 

/Vmended 

Amended 

Amended 

/Vmended 

Amended 

/Vmended 

yVmendcd 

/Vmended 

** /Vmended 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 



liSS 5:24 NORTH CAROLINA REGISTER March 15, 1991 



OEl'ARIMEN [ OF EWIRONMENT, HEALTH, 


15A NCAC 2B 


.0104 
.0211 
.0212 
.0303 




2D 


.0901 - 


.0902 




.0912- 


.0913 




.0925 - 


.0926 




.0928 - 


.0930 




.0933 






.0943 




711 


.1103 
.1203 
.1303 
.1403 
.1503 
.1603 
.1703 
.1803 
.1903 




7J 


.0204 






.0404 - 


.0406 


13B 


.1202 
.1204 




18A 


.0101 
.0108 
.0203 
.0301 
.0401 
.0420 
.0429 
.0501 
.0601 






.0612- 


.0613 




.0701 






.0703 - 


.0705 




.0801 






.1001 






.1020 






.1301 






.1311 






.1317 






.1320- 


.1321 




.1406 





FINAL RULES 



.1410 * Correction 

.1417 * Correction 

.1805 -.1806 * Correction 

.1814 * Correction 

.1818 * Correction 

.1956 * Correction 

.2605 - .2609 * Correction 

.2612 * Correction 

.2615 * Correction 

.2617 * Correction 

.2623 * Correction 

.2634 - .2636 * Correction 

.2638 * Correction 

.2643 * Correction 

18B .0101 * Correction 

.0104 * Correction 

.0106 * Correction 

.0203 - .0204 * Correction 

.0207 - .0208 * Correction 

ISC .0102 * Correction 

.0201 * Correction 

.0303 * Correction 

.0307 * Correction 

.0401 - .0403 * Correction 

.0405 * Correction 

.0706 * Correction 

.0802 - .0804 * Correction 

.0907 * Correction 

.1 106 * Correction 

.1203 * Correction 

.1301 * Correction 

.1502 * Correction 

.1505 * Correction 

.1507 -.1508 + Correction 

.1510 * Correction 

.1512 -.1513 * Correction 

.1515 - .1516 * Correction 

.1519 * Correction 

.1522 -.1523 ♦Correction 

.1525 * Correction 

.1534 * Correction 

.1601 - .1603 * Correction 

.1605 * Correction 

.1608 * Correction 

.1612 -.1613 * Correction 

.1802 + Correction 

.1804 * Correction 

.1902 * Correction 

.1906 * Correction 

.1911 * Correction 

ISD .0403 Amended 

19A .0102 * Correction 

.0201 + Correction 

.0203 * Correction 

.0301 * Correction 

.0403 ♦ Correction 

.0405 * Correction 

.0501 - .0503 * Correction 

.0602 * Correction 



5:24 NORTH CAROLINA REGISTER March 15, 1991 13S9 



FINAL RULES 



19C .0102 * Correction 

19D .0103 * Correction 

.0203 + Correction 

.0405 - .0408 + Correction 

19F .0103 * Correction 

19H .0301 * Correction 

.0907 * Correction 

191 .0105 * Correction 

20D .0201 - .0207 * Correction 

.021 1 * Correction 

.02 13 -.02 15 * Correction 

.0219 - .0220 * Correction 

.0223 * Correction 

.0227 * Correction 

.0229 - .0230 * Correction 

21 B .0108 * Correction 

.0204 - .0205 * Correction 

21 C .0101 * Correction 

.0103 -.0104 * Correction 

.0201 * Correction 

.0204 - .0205 * Correction 

.0301 - .0303 * Correction 

.03 10 -.03 11 * Correction 

.0402 + Correction 

21D .0706 ♦ Correction 

.0904 * Correction 

.1003 * Correction 

21E .0104 -.0107 * Correction 

.0303 * Correction 

.0305 - .0306 * Correction 

.0309 - * Correction 

21F .0301 - .0302 * Correction 

.0401 * Correction 

.0404 - .0405 * Correction 

.0410 * Correction 

.0501 * Correction 

.0505 - .0508 * Correction 

.0510 -.0514 * Correction 

.0603 * Correction 

.0801 - .0803 * Correction 

.1009 * Correction 

.1012 + Correction 

21G .0103 - .0105 * Correction 

.0206 * Correction 

.0403 ♦ Correction 

.0405 - .0406 * Correction 

.0504 * Correction 

.0507 - .0509 * Correction 

21H .0110 * Correction 

.0113 * Correction 

.01 15 -.01 IS * Correction 

.0203 * Correction 

.0209 * Correction 

.0303 * Correction 

.0311 * Correction 

23 .0308 - .0309 * Correction 

25 .02 10 -.02 13 * Correction 

SECRKIAR^ Ol S lATE 



1^90 5:24 SORTH CAROLINA REGISTER March 15, 1991 



FINAL RULES 



NCAC 



.1901 

.1902- .1903 
.1904- .1906 



BOARD OF MEDICAL EXAMINERS 



21 


NCAC 


32B 


.0101 
.0315- 


.0316 






32N 


.0001 - 
.0005 


.0004 


MIDWIFERY JOINT 


COMMITTEE 




21 


NCAC 


33 


.0006 




BOARD OF Nl RSIN 


G 

36 


.0501 - 




21 


NCAC 


.0503 








.0506 




BOARD Ol 


PHARMACY 







21 NCAC 46 .2108 
OFFICE OF STATE PERSONNEL 



NCAC 



lA .0005 

IB .0436 

ID .0510 

.0707 



** Adopted 
Adopted 
** Adopted 



** Amended 
** Adopted 
Adopted 
** Adopted 



Adopted 



Adopted 
Adopted 



Adopted 



Adopted 
** Amended 
/Vmended 
** Amended 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



1391 



ARRC OBJECTIONS 



I he Administrative Rules Review Commission (ARRC) objected to the following rules in accord- 
ance with G.S. I43B-30.2(c). State agencies are required to respond to ARRC as provided in G.S. 

1 43 B- 30. 2(d). 



ECONOMIC AND COMML^NITY DEVELOPMENT 

Hazardous Waste Management Commission 

4 NCA C IS .0309 - Final Site 

ENTIRONMENT, HEALTH, AND NATURAL RESOURCES 

Adult Health 

J5A NCAC I6A .0804 - Financial F.ligibilitv 

ISA NCAC I6A .0806 - Billing the HIV Health Seryices Program 

Coastal Management 

ISA NCAC 7 J .0409 - Civil Penalties 
ISA NCAC 7 J .1109 - Permit Fee 

Environmental Health 

ISA NCAC I8C .0102 - Definitions 

ISA NCAC ISC .1532 - Variances and Fxemptions 

ISA NCAC ISC .1534 - Max Contaminant Levels for Coliform Bacteria 

ISA NCAC ISC .2001 - General Requirements 

ISA NCAC ISC .2002 - Disinfection 

ISA NCAC ISC .2003 - Filtration 

ISA NCAC ISC .2004 - Analytical and Monitoring Requirements 

ISA NCAC ISC .2005 - Criteria for Avoiding Filtration 

Marine Fisheries 

ISA NCAC 3C .0311 - Cancellation 

Agency Revised Rule 
ISA NCAC 30 .0203 - Shellfish Lease Application Processing 

Agency Revised Rule 

Wildhfe Resources Commission 

ISA NCAC I OH .0302 - Minimum Standards 
Agency Revised Rule 



ARRC Objection I / 18/91 



ARRC Objection l!IS:9l 
ARRC Objection 1118/91 



ARRC Objection 1/ 18/91 
ARRC Objection 1118/91 



ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 



Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 



10/18/90 
10/18190 
10/18/90 
10/18/90 
10/18/90 
10' 18190 
10/18/90 
10/ IS; 90 



ARRC Objection 9:20 90 
Obj. Removed 10/18:90 
ARRC Objection 8^16/90 
Obj. Removed 9/20/90 



ARRC Objection 9,20/90 
Obj. Removed 10/ IS/90 



1392 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



ARRC OBJECTIONS 



HUMAN RESOURCES 

Facility Services 

/O NCAC 3V .0303 - Insurance Required 

Individual and Family Support 

/O NCAC 42B .1201 - Personnel Requirements 

10 NCAC 42C .2001 - Qualifications of Administrator 

10 NCAC 42C .2002 - Qualifications of Supervisor- in-Charge 

JO NCAC 42C .2006 - Qualifications of Activities Coordinator 

JO NCAC42C .330 J - Existing Building 

JO NCAC 42D .J40J - Qualifications of Administrator j Co- Administrator 

rSSURANCE 

Life: Accident and Health Division 

// NCAC J 2 .0904 - Requirements for Utilization Review 
Agency Revised Rule 

LICENSING BOARDS AND COMMISSIONS 

Medical Examiners 

2 J NCAC 32M .0007 - Termination ofNP Approval 

Nursing, Board of 

2/ NCAC 36 .02J7 - Revocation, Suspension, or Denial of License 

No Response from Agency 
2 J NCAC 36 .0504 - Certificate of Registration 
2 J NCAC 36 .0505 - General and Administrative Provisions 
2 J NCAC 36 .0507 - Fees 

Physical Therapy 

2 J NCAC4SC .0J02 - Responsibilities 

Agency Returned Rule Unchanged 
2 J NCAC4SC .050 J - Exemption for Students 

Agency Returned Rule Unchanged 



ARRC Objection JJ/J4I90 



ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 



Objection 
Objection 
Objection 
Objection 
Objection 
Objection 



JJJ8I9J 
JI18I9J 
J 1 1819 J 
Jll8i9J 
J1I14J90 
JJIJ4I90 



ARRC Objection J 2120190 
Obj. Removed 11J8\9J 



ARRC Objection JJIJ4J90 



ARRC Objection J2/20/90 
J/J8I91 
ARRC Objection 1118/91 
ARRC Objection 1118,91 
ARRC Objection 1118/91 



ARRC Objection 9120190 
No Action 10/18/90 

ARRC Objection 9/20/90 
No Action 10/18190 



Plumbing and Heating Contractors 

21 NCAC 50 .1203 - Disposition of Petitions 
21 NCAC 50 .1207 - Request to Participate 

SECRETARY OF STATE 

Securities Division 

18 NCAC 6 .J2J0 - Securities Exchgs'Autod Quot. Sys. Approved/ Admin 
Agency Responded to Objection 



ARRC Objection JJiJ4''90 
ARRC Objection J J/ 14/90 



ARRC Objection J 2/20:90 
No .Action 1/18/91 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



1393 



ARRC OBJECTIONS 



STATE PERSOVsEL 



25 SCAC IB .0/07 - Personnel Commission Meetings 

25 SCAC IB .0108 - Commission Staff 

25 XCAC IB .0109 - Commission Actions 

25 XCAC IB .0110 - Motions 

25 .XCAC IB .Oil I - Voting 

25 SCAC IB .0112 - .Abstention 

25 SCAC IB .0113 - Duties of the Chairman 

25 SCAC IB .0114 - Order of Business 

25 SC.4C IB .0115 - Special .Meetings 

\C.4C IB .01 16 - Duties of Chairman Bet^'een .Meetings of the Comm 

\C.4C IB .0117 - Standing Special Committees 

XCAC IB .0118 - Minutes 

\C.-iC IB .0119 - Sotice of Commission Action 

\'C.4C IB .0120 - .4ppointment of Vice-Chairman 
Agency Withdrew Rules .0107 . ,0120 
25 .\C.4C ID .0509 - Severance Salary- Continuation ■ 
25 SCAC IL .0201 - Purpose 
25 SCAC IL .0202 - Policy- 
Agency IVithdreiv Rules .0201 - .0202 



25 
25 
25 
25 



ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 



Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 



9 20 90 
9 20:90 
9 20:90 
9 20 90 
9 20 90 
9 20 90 
9:20:90 
9 20 90 
9,20 90 
9 20 90 
9 20 90 
9.20 90 
9^20 90 
9 20 90 
10 18 90 



ARRC Objection I 18 91 

ARRC Objection 9 20 90 

ARRC Objection 9.20 90 

10. 18 90 



1394 



5:24 \ORTH CAROLINA REGISTER March 15, 1991 



RULES INVALIDA TED BY JUDICIAL DECISION 



1 his Section of the Register lists the recent decisions issued by the North Carolina Supreme Court. 
Court of Appeals, Superior Court {when available), and the Office of Administrative Hearings which 
invalidate a nde in the North Carolina Administrative Code. 



10 NCAC IB .0202(c) - REQUEST TOR DETERMINA TIO^' 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rule 
10 NCAC IB .0202(c) void as applied in New Hanover Memorial Hospital, Inc.. Petitioner v. N.C 
Department of Human Resources, Division of Facility Services, Certificate of Need Section, Respondent 
(90 DHR 0792). 

10 NCAC IB .0202(c) - REQUEST TOR DETERMINA TION 

Brenda B. Becton, Administrative I^w Judge with the Office of Administrative Hearings, declared Rule 
10 NCAC IB .0202(c) void as applied in High Point Regional Hospital, Inc., Petitioner v. Department 
of Human Resources, Di\'ision of Facility Services. Certificate of Need Section, Respondent (90 DHR 
0770). 

10 NCAC 3R .0317(g) - UTTHDRAWAL OTA CTRTITICATE 

Robert Roosevelt ReiUy, Jr., Administrative Law Judge with the Office of Administrative Hearings, 
declared Rule 10 NCAC 3R .0317(g) \'oid as applied in Dawn Health Care, a North Carolina General 
Partnership, Petitioner v. Department of Human Resources, Certificate of Need Section, Respondent (90 
DHR 0296). 

nj .\CAC 3R .0317(g) - WITHDRA IVAL OT CERTITICA TE 

Michael Rivers Morgan. Administrative Law Judge with the Office of Administrative Hearings, de- 
clared Rule 10 NCAC 3R .0317(g) void as applied in Autumn Corporation, Petitioner v. N.C. Depart- 
ment of Human Resources, Division of Facility Services, Certificate of Need Section. Respondent (90 
DHR 0321 and 90 DHR 0318). 

10 NCAC 261 .0101 - PURPOSE: SCOPEjNOTICE OT CHANGE IN LEVEL OT CARE 

10 NCAC 261 .0102 - REQUESTS TOR RECONSIDERA TION AND RECIPIENT APPEALS 

10 NCAC 261 .0104 - TOR.MAL APPEALS 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rules 
10 NCAC 261 .0101, 10 NCAC 261 .0102^ and 10 NCAC 261 .0104 void as apphed in Linda Allred. 
Petitioner v. North Carolina Department of Human Resources, Division of Medical Assistance, Re- 
spondent (90 DHR 0940). 

10 NCAC 42W .0003(c) - COUNTY DEPT OT SOCIAL SERVICES RESPONSIBILITIES 
10 NCAC 42W .0005 - REPORTING CASES OF RAPE AND INCEST 

The North Carolina Court of Appeals, per Judge Robert F. Orr, declared Rules 10 NCAC 42W 
.0003(c) and 10 NCAC 42W .0005 void as apphed m Rankin Whittinglon. Daniel C Hudgins, Dr. Takey 
Crist, Dr. Gwendolyn Boyd and Planned Parenthood of Greater Charlotte. Inc.. Plaintiffs v. The North 
Carolina Department of Human Resources. David Flaherty, in his capacity as Secretary of the North 
Carolina Department of Human Resources, The North Carolina Social Services Commission, and C 
Barry McCarty, in his capacity as Chairperson of the North Carolina Social Services Commission, De- 
fendants [100 N.C. .^pp. 603, 398 S.E.2d 40 (1990)]. 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1395 



NORTH CAROLINA ADMIMSTRATIVE CODE CLASSIFICATION SYSTEM 



The Norlh Carolina Administraiive Code '^ NCACj has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. The major subdivision of the NCAC is the title. 
Each major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall be numerical 
in order. The other two, subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLE/MAJOR DFV ISIONS OF THE NORTH CAROLES A ADMESISTRATrV E CODE 



riTLE 


DEPARTMENT 


LICENSING BOARDS 


CHAPTER 


1 


Administration 


Architecture 


2 


2 


Agriculture 


Auctioneers 


4 


3 


Auditor 


Barber Examiners 


6 


4 


Economic and Community 


Certified Pubhc Accountant Examiners 


8 




Development 


Chiropractic Examiners 


10 


5 


Correction 


General Contractors 


12 


6 


Council of State 


Cosmetic Art Examiners 


14 


7 


Cultural Resources 


Dental Examiners 


16 


8 


Elections 


Electrical Contractors 


18 


9 


Governor 


Foresters 


20 


10 


Human Resources 


Geologists 


21 


11 


Insurance 


Hearing .Aid Dealers and Fitters 


22 


12 


Justice 


Landscape /Vrchitects 


26 


13 


Labor 


Landscape Contractors 


28 


I4A 


Crime Control and Public Safety 


Marital & Family Therapy 


31 


I5A 


Environment, Health, and Natural 


Medical Examiners 


32 




Resources 


Mid\vifer\" Joint Committee 


33 


16 


Public Education 


Mortuan." Science 


34 


17 


Revenue 


Nursing 


36 


18 


Secretary of State 


Nursmg Home Administrators 


37 


19A 


Transportation 


Occupational Therapists 


38 


20 


Treasurer 


Opticians 


40 


*21 


Occupational Licensing Boards 


Optometr>" 


42 


22 


Administrati\'e Procedures 


Osteopathic Examination and 


44 


23 


Community Colleges 


Registration 




24 


Independent Agencies 


Pharmacy 


46 


25 


State Personnel 


Physical Therapy Examiners 


48 


26 


Administrative I learings 


Plumbing and Heating Contractors 


50 






Podiatr>- Examiners 


52 






Practicing Counselors 


53 






Practicing Psychologists 


54 






Professional Engineers and Land Sur\e\ors 56 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian Examiners 


62 






Social Work 


63 






Speech and Language Pathologists and 


64 






Audiologists 








\'eterinar\- Medical Board 


66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



1396 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



CUMULA TIVE INDEX 



CVMULA TIVE INDEX 

(April 1990 - March 1991) 



1990 - 1991 



Pases 



Issue 



1 - 151 1 - April 

152 - 235 2 - April 

236 - 285 3 - May 

286 - 312 4 - May 

313 - 407 5 - June 

408 - 473 6 - June 

474 - 513 7 - July 

514 - 603 8 - July 

604 - 635 9 - August 

636 - 723 10 - August 

724 - 791 11 - September 

792 - 859 12 - September 

860 - 895 13 - October 

896 - 956 14 - October 

957 - 1009 15 - November 

1010 - 1059 16 - November 

1060 - 1106 17 - December 

1107 - 1176 18 - December 

1177 - 1214 19 - Januar\' 

1215 - 1244 20 - January 

1245 - 1302 21 - February 

1303 - 1322 22 - February 

1323 - 1366 23 - March 

1367 - 1400 24 - March 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

FR - Fmal Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

AI - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMrsISTRATION 

Auxiliar)-- Ser\-ices, 860 PR, 1328 PR 
State Property and Construction, 411 PR 

ADMIMSTRAXrV E HEARHsCS 

Rules Division, 792 PR 



5:24 NORTH CAROLINA REGISTER March 15, 1991 



1397 



CUMULA TIVE INDEX 



Af.RICl LTLRE 

Markets, 737 PR 

Plant Consen-ation Board, I PR, 1303 PR 

Plant Industry', 739 PR, 1248 PR 

State Fair, 737 PR, 1248 PR 

Structural Pest Control Committee, 7 PR 

COMMl^n V COLLEGES 

(Community Colleges, Department of, 1031 PR 

CORRECTION 

Division of Pnsons, 762 FR, 867 FR, 938 FR. 1035 FR, 1274 FR 

CRLME CONTROL AND PUBLIC SAFETY 

State Hmhwav Patrol, 53 PR, 804 I'R 
Butner PubUc Safety Division, 419 PR 
Victim and Justice Services, 1374 PR 

ECONOMIC AND COMMLAITV DEVELOPMENT 

Bankinsj Commission, 16 PR. 1062 PR, 1108 PR 
Community Assistance, 25 PR, 317 PR, 1110 PR 
Credit Union, 317 PR. 860 PR, 1251 PR 
Encrev Division, 1013 PR 

HazaVdous Waste Manaaement, 742 PR, 1109 PR 
Milk Commission, 24 PR. 741 PR 

ENVIRONMENT, HEALTH, AND NATl RAL RESOURCES 

Coastal Manaiicment, 136 PR, 292 PR, 707 PR, 979 PR, 1271 PR 

En\u-onmental Manaizement, 54 PR, 193 PR, 420 PR, 542 PR, 706 PR, 744 PR, 912 PR, 1019 PR, 

1121 PR, 1185 PR. I329 PR 
Health Scr%ices, 190 PR. 565 PR, 816 PR, 860 PR, 1123 PR, 1188 PR 
Land Resources, 744 PR 
Manne Fishenes, 63 PR, 484 PR, 805 PR 
State Registrar, 1221 PR 

Wastewater Treatment Plant Operators Certification Commission, 551 PR 
Water Treatment F'acilitv Operators Board of Certification, 621 PR, 983 PR, 1272 PR 
XN'ildlife Resources and Water Safetv, 137 PR, 206 PR, 293 PR, 349 PR, 438PR, 563 PR, 748 PR, 815 PR, 

924 PR, 1020 PR, 1074 PR, 1186 PR, 1220 PR, 1305 PR, 1334 PR 

FINAL DECISION I LITERS 

Voting Rights Act, 241, 286, 316, 605, 638, 792, 957, 1011, 1061, 1107,1246, 1327, 1370 

FINAL RULES 

List of Rules Codified, 143 FR, 226 FR, 302 FR, 463 FR, 587 FR, 710 FR,842 FR, 944 FR, 1047 FR, 
1166 FR. 1230 1-R, 1308 FR, 1387 FR 

GO\LRNOR/LT. (iOVERNOR 

Fxecutne Orders. 236, 313, 4US, 474, 514, 604, 636, 724, 896, 1010, 1060, 1245, 1326 

HIMAN RESOURCES 

Aizme, Division of. 704 PR 

Druii Commission. 870 FR, 939 FR 

Facilitv SerMces. 516 PR. 702 PR. 958 PR, 1116 PR. 1216 PR, 1251 PR, 1371 PR 

Hcahh Ser\ices, 152 PR, 245 PR 

Medical Assistance, 191 PR, 911 PR, 1018 PR, 1328 PR 

Mental He;i]th. Developmental DisabiHties and Substance Abuse Services, 29 PR, 318 PR, 475 PR, 898 PR, 

121') PR 
Services lor the Blind. 412 PR 
Ser\ices for the Deaf and the Hard of Hearinii, 1065 PR 



li9H 5:24 NORTH CAROLINA REGISTER March I\ I99I 



CUM if LA TIVE INDEX 



Social Sendees, 247 PR, 607 PR, 976 PR, 1262 PR 

Water Treatment Facility Operators Board of Certification, 27 PR 

Youth Ser\'ices, 261 PR, 1268 PR 

CSSLRANCE 

Actuarial Services Division, 480 PR, 1374 PR 

Admission Requirements, 1220 PR 

Agent Ser\'ices Division, 321 PR, 520 PR 

Engineering and Building Codes, 793 PR, 1371 PR 

Financial Evaluation Division, 342 PR, 525 PR 

Fire and Casualty Division, 335 PR, 478 PR, 796 PR 

Life: Accident and Health, 264 PR, 287 PR, 529 PR, 798 PR 

Medical Database Commission, 1120 PR 

JUSTICE 

Attorney General, Office of the, 192 PR, 273 PR 

Criminal Justice Education and Training Standards Commission, 704 PR, 1178 PR 

Sheriffs' Standards Division, 608 PR 

LABOR 

Migrant Housing, 1303 PR 

LICENSLSG BOARDS 

Architecture, Board of, 1162 PR 

Auctioneers Commission, 1093 PR 

Certified Public Accountant Examiners, 983 PR 

Cosmetic Art Examiners, Board of, 355 PR, 708 PR, 927 PR, 1335 PR 

Dental Examiners, Board of, 1 196 PR 

Electrical Contractors, Board of Examiners of, 356 PR 

Landscape ^Vrchitects, Board of, 1273 PR 

Medical Examiners, Board of, 207 PR, 838 PR, 862 PR, 1222 PR, 1323 C, 1367 C, 1374 PR 

Midwifer>' Joint Committee, 994 PR 

Mortuary Science, Board of, 749 PR, 1337 PR 

Nursing, Board of, 300 PR, 496 PR, 994 PR, 1096 PR, 1 199 PR 

Nursing Home Administrators, Board of, 750 PR, 1203 PR 

Opticians, Board of, 1375 PR 

Pharmacy, Board of, 1031 PR 

Physical Therapy Examiners, Board of, 443 PR 

Plumbing and Fleating Contractors, Examiners, 621 PR, 1204 PR 

Practicing Psychologists, Board of, 755 PR 

Real Estate Commission, 625 PR, 863 PR, 1341 PR 

NOTICE 

OAH, Change of Address, 1215 

NOTICE OF PETITION 

Municipal Incorporation, 1177 

PLBLIC EDUCATION 

EIementar>' and Sccondar>', 141 PR, 275 PR, 351 PR, 1028 PR, 1160 PR, 1334 PR 

REVENUE 

Corporate Income and Franchise Tax Division, 1378 FR 
Individual Income Tax, 359 FR, 1036 FR, 1277 FR, 1384 FR 
Intangibles Tax Division, 1226 FR 
License and Excise Tax Division, 445 FR 
Sales and Use Tax, 213 FR, 453 FR, 872 FR 



5:24 NORTH CAROLINA REGISTER March 15, 1991 1399 



CUMULA TIVE INDEX 



SFXRETARY OF STATE 

Corporations Division, 489 PR 

Sccunties Division, 293 PR, 495 PR, 927 PR, 1029 PR 

STATE FERSONAEL 

State Personnel Commission, 277 PR, 500 PR, 756 PR, 996 PR, 1206 PR, 1347 PR 

STATE TREASURER 

Department Rules, 352 PR 

Local Government Commission, 352 PR, 442 PR, 1195 PR 

Solid Waste Management Capital Projects Financing Agency, 354 PR 

STATE>rENTS OF ORGANIZATION 

Statements of Organization, 639 SO 

TRANSPORTATION 

Highways, Division of, 765 FR, 883 FR, 1038 FR, 

Motor Vehicles, Division of, 222 FR, 773 FR, 943 FR, 1290 FR 



UOO 5:24 NORTH CAROLINA REGISTER March 15, 1991 



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